China Merchants Expressway bags AAA credit rating for bond offering

China Merchants Expressway Network & Technology Holdings has secured an AAA credit rating from China Chengxin International Credit Rating for its 2025 public offering of technology innovation perpetual corporate bonds (tranche 2) to professional investors. The rating, with a stable outlook, applies to both the issuer and the bonds, indicating extremely strong debt repayment ability and minimal impact from unfavorable economic conditions. The second tranche of these bonds is capped at 1.75 billion yuan, with a base maturity of two years and an option for the issuer to extend the term.

The bonds feature a deferred interest payment option and a reset interest rate mechanism every two years. In the event of a mandatory interest payment trigger, the issuer must pay all deferred interest. This issuance is categorized as an an equity instrument in the company's financial statements. The credit rating report highlights the company's significant investment in and management of highway assets across 22 provinces, autonomous regions, and municipalities, reinforcing its strong operational capacity and stable cash flow from business operations. The offering is poised to optimize the company's debt structure and strengthen its financial resilience.