Wuxi New District Development Group Ltd, the major developer of Wuxi's State high-tech development zone, recently raised 1 billion yuan ($16 million) by selling a five-year term bond. The bond pays 5.45 percent interest annually.

The sale of the bond is the first step of a 4 billion yuan ($65 million) financing plan approved in July. The bond offered a lucrative sell option due to it being 2.41 times oversubscribed. China Securities Co Ltd is the main underwriter of the bond.

It is the first non-publicly traded corporate bond issued by an unlisted Wuxi-based company and indicates a new move for local State-owned companies in diversifying direct financing methods.

Wuxi New District Development Group is an AA+ company, as rated by China Lianhe Credit Rating. The money raised by the bond will be used to revitalize the company’s cash flow, pay debts and adjust the structure of liabilities.