Chongqing Nanan District Urban Construction Group issued bonds worth 5.33 billion yuan ($800 million) through China International Capital on July 12, according to officials at the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity.

It is the first US dollar bond issued by the China-Singapore Demonstration Initiative, the third Sino-Singapore demonstration project to establish cooperation in trade and services. Nanan Urban Construction was assigned on a bond credit rating of BBB+, which is an investment grade rating. The first BBB+ global rating in Chongqing lays the foundation for other local companies to expand overseas.

The bonds include a 300 million yuan three-year bond with loan interest rate of 2.875 percent and a 500 million yuan five-year bond with loan interest rate of 3.625 percent. A 200-million-yuan 10-year bond is expected to be issued soon.

Subscription to the bond has attracted some $4 billion as well as 196 investors. Most of the subscribers are overseas investors, such as Blackrock, Schroders, Fullerton, Fidelity and Korea Investment Corporation, which demonstrates the great confidence for the future development of Chongqing and Nanan Urban Construction.