Press Release

JPMFC Acted as Sole Lead Underwriter of the CLO Offering for Bank of Ningbo Co., Ltd.

J. P. Morgan First Capital (JPMFC) acted as the sole lead underwriter, successfully completed the CLO for Bank of Ningbo Co., Ltd. (the Company) on May 29th, 2014. This is the first CLO project issued by JPMFC, and the second one issued by city commercial banks since the restart of CLO in 2012.

JPMFC assisted the Company to prepare the application of CLO and filed to CBRC by end of Oct. 2013. The project was officially approved by CBRC and PBoC in 2014.

As Collateralized Loan Obligation is just at the pilot stage, the liquidity is relatively poor and the project gained limited recognition from investors at the beginning. JPMFC conducted intensive roadshows to various types of investors including banks, mutual funds, insurance companies and securities companies. The deal team launched the offering as soon as the approval was secured from PBoC to be able to capture the best market window. The deal was priced with 1.4x oversubscription, with each tranche priced around 30 bps lower than expected. This has demonstrated JPMFC's strong sales force and abundant experience in bond distribution, and won the recognition from the client and the investors.