Shanghai Electric Group Co. began marketing so-called pearl bonds in the Shanghai free-trade zone on Wednesday, marking the first bond sale in almost three years by a non-financial company as authorities reopen the market with tighter rules. The energy equipment maker backed by the municipality set initial price guidance around 2.4%, according to a person familiar. The revival follows a 2023 crackdown that halted purchases of pearl bonds by domestic banks after the market became a popular avenue for debt-ridden local government financing vehicles to raise money. Year-to-date issuance in the FTZ bond market has surged to more than five times last year’s level over the same period, though total sales have only reached $512 million, a fraction of the $19 billion market. The new three-year notes are being sold through an overseas subsidiary and will be guaranteed by the company’s Hong Kong subsidiary with a keepwell deed from Shanghai Electric Group.
Moodys CorporationShanghai Electric Group Co LtdShanghai Electric is marketing its first pearl bond since the 2023 crackdown, accessing new financing.
