A Chinese infrastructure company has successfully raised $350 million in digital yuan for its new technology innovation bond.
According to Shanghai Securities News, the Shandong Hi-Speed Group issued the “Shandong Hi-Speed Group Co., Ltd. 2024 Public Offering to Institutional Investors of Science and Technology Innovation Renewable Corporate Bonds (First Phase)” and listed the bond on the Shanghai Stock Exchange.
First Tech Innovation Bond Raised in Digital Yuan
With the $350 million (¥2.5 billion) funds raised in China’s central bank digital currency (CBDC), the bond sets a precedent for future financial products and a new record for its low coupon rate of 2.94% with the 3+N years term in Shandong province.
This science and technology innovation bond has CITIC Securities as the lead underwriter and GF Securities, Dongxing Securities, Orient Investment Bank, and Huatai United Securities as joint lead underwriters.
To publicize the comprehensive adoption of digital yuan, some of the Shandong Hi-Speed Group’s affiliated toll stations have been upgraded to accept digital yuan payments.
The issuance of the bond marks the Group’s elevated move to promote China’s CBDC.
Shandong Hi-Speed Group is a Chinese state-owned capital investment company in the domestic expressway field and a Fortune Global 500 enterprise. It operates and manages 8,745 kilometers of expressways and owns six listed companies at home and abroad.
China Continues to Promote Its CBDC
Chinese authorities have been actively promoting the country’s digital currency.
China State Council’s General Office previously announced a comprehensive reform initiative for Shanghai’s Pudong New Area, including a significant focus on the pilot use of digital yuan in various sectors.
A central feature of the plan was to incorporate e-CNY into trade settlement, e-commerce payments, carbon trading, and green power trading. The initiative aimed to normalize and broaden the range of applications for the digital yuan, especially in the context of fiscal fund usage.
In addition, Beijing Municipal Committee Member and Hong Kong Professionals Association President Fung Kwok-yau suggested that the city should accelerate the progress of Beijing’s “Digital Yuan Adoption Demonstration Zone.”
“To increase the citywide promotion of digital yuan applications, a regular promotion mechanism needs to be established,” said Fung.
“At the same time, measures to encourage consumers to use digital yuan should be implemented, such as using electronic consumption coupons.”
The post Chinese Company Issues First $350 Million Tech Innovation Bond Raised in Digital Yuan appeared first on Cryptonews.