Petrochina Group Issued The First 5 Billion Yuan Ultra Short Fuse

On December 23rd, the bulletin published on the China bond information network showed that China Petroleum and Natural Gas Corporation will tender for issuing 5 billion yuan ultra short term financing coupons on Friday for a period of 270 days.

This is the first ultra short term financing certificate issued by the interbank bond market in China.

Statistics show that China Petroleum and Natural Gas Corporation registered 100 billion yuan in December 21st on the issue of ultra short term financing bonds in the association of interbank market dealers. It was one of the first three institutions to obtain the quota, and PetroChina was the parent company of A+H listed company 601857.SH/0857.HK.

The announcement indicates that the leading underwriters of the ultra short term financing note are 601398.SH/01398.HK and 601328.SH/03328.HK.

On the date of the signing of the prospectus, the issuer's remaining debt financing instruments are 231 billion yuan and 1 billion dollars, 20 billion yuan of corporate bonds, 3 billion 500 million yuan of corporate bonds, and 5 billion yuan of financial debt.

Super & Short-term Commercial Paper refers to the short-term financing certificate issued by the non-financial enterprises in the inter-bank bond market with a legal person qualification and a relatively high credit rating, within a period of 270 days.

As a kind of debt financing tool for non-financial enterprises, ultra short term financing coupons belong to the category of money market instruments from the time limit. They are characterized by simple information disclosure, high registration efficiency, convenient distribution and flexible use of funds.

In December 21st, the inter bank Dealers Association of China announced the launch of the ultra short term financing business. It stipulates that the funds raised by enterprises to issue ultra short term financing certificates shall be applied to the liquidity requirements that are in line with the prescribed requirements and shall not be used for long-term investments.

Ultra short term financing coupons will be registered, trusteeship and settlement at the Shanghai clearing house.