In the past six months, nine companies in Wuhan East Lake High-tech Development Zone (Optics Valley of China, or OVC) have issued 14 sci-tech bonds, accounting for 33 percent of Hubei province's total issuers, with a cumulative issuance scale of 9.74 billion yuan ($1.39 billion), providing substantial financial support for OVC's technological innovation.

Of the issued bonds, 57 percent were by technology companies, with proceeds used for the development of optoelectronic devices, high-end equipment manufacturing, and mergers and acquisitions. Investment institutions issued the remaining 43 percent.

Institutions such as Hubei Science Technology Investment Group and Wuhan Innovation Investment Group reinvested 60 percent of the funds raised in OVC's sci-tech enterprises through equity investments, further strengthening the industrial ecosystem.

The sci-tech bonds are designed with terms ranging from three to five years, extendable up to over 15 years, and feature a phased issuance model. This structure aligns well with the needs of industries such as optoelectronic chip development and new energy battery technology iteration, thereby alleviating pressure from short-term loan renewals.

Using the national sci-tech bond risk-sharing tool, combined with low-cost central bank refinancing, local government policy support, and guarantees from market-based credit enhancement institutions, regional sci-tech bonds maintain a low coupon rate of approximately 2 percent.

OVC is accelerating the construction of an ecosystem that deeply integrates technology, capital, and industry, aiming to cultivate new quality productive forces and consolidate its industrial core competitiveness.