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Shaanxi Coal Group successfully issued 4 billion yuan worth of corporate bonds, which will be used for the construction of a project with an annual production capacity of 1.8 million tons of ethylene glycol. Author/Source: Yahuahua Coal Chemicals. Date: 2020-03-23. Clicks: 56. Recently, Shaanxi Coal and Chemical Industry Group Co., Ltd.’s first batch of corporate bonds for 2020 was successfully registered at the Central Government Debt Registration and Settlement Co., Ltd. The bond issuance amount is 4 billion yuan, with a maturity period of 7+5+3 years; the coupon rate is 3.94%, which is nearly 1 percentage point lower than the benchmark interest rate for long-term RMB loans during the same period. This represents the largest single-issue volume of ultra-long-term corporate bonds in the domestic market over the past five years. The successful issuance of these bonds has effectively reduced Shaanxi Coal Group’s long-term financing costs, optimized its asset-liability structure, and further improved the liquidity of its working capital. The funds raised this time will be primarily used for the construction of the first phase of the demonstration project on the utilization of coal in different ways to produce new chemical materials, specifically a plant with an annual production capacity of 1.8 million tons of ethylene glycol, operated by Shaanxi Coal Group Yulin Chemical Co., Ltd. This project is an important part of Shaanxi Coal Group’s strategy to shift its operations northward, and it also serves as a crucial foundation for the group’s transformation and development as well as its efforts to catch up with and surpass others. The issuance of these bonds will provide solid financial support for the successful achievement of Yulin Chemical’s construction goals. The successful issuance of this bond was made possible through the strong support of higher-level authorities such as the Provincial Development and Reform Commission. It represents Shaanxi Province’s commitment to innovative development in the field of direct financing, and it marks another breakthrough for high-quality state-owned enterprises in Shaanxi in terms of financing through ultra-long-term bonds.