Press Release

FCIB acted as the Lead Underwriter on the CLO Offering for Guangzhou Rural Commercial Bank Co., Ltd.

As the lead underwriter and book runner, First Capital Investment Banking (“FCIB”) successfully completed the CLO transaction for Guangzhou Rural Commercial Bank Co., Ltd. (“the Issuer”) on December 8th, 2017. This is the 21st credit asset securitization transaction led by FCIB, and the 2nd CLO deal of Guangzhou Rural Commercial Bank served by FCIB.

The asset pool is mainly composed of large and medium-sized corporation loans, with a total scale of RMB 6.018 billion, which is the largest among all the deals issued by rural commercial banks. During the deal execution process, FCIB helped the bank and coordinated the other intermediary agencies perform sufficient feasibility analysis, design the deal structures, prepare all application documents and effectively communicated with regulatory authorities. As a result, the transaction was approved very smoothly and quickly by the authorities, which was highly recognized by the client.

Despite tight liquidity and weak market sentiment on the money market towards the end of the year, DCM team successfully launched the deal at the beginning of December by capturing a favorable market window, which was highly recognized by the clients and markets. Before the issuance of the bond, we did sufficient inquiry and marketing work with the issuers and the joint underwriter in the area of Beijing, Shanghai, Guangzhou and Shenzhen, and made roadshows to the key institutions through one-to-one and one-to-many marketing approaches. In addition, DCM team comprehensively considered these relevant factors, the market changes, the inquiry results and the coupon rates of the bonds that issued in the same period, and eventually set a reasonable pricing range. The coupon rates for tranche A and tranche B were priced at 5.60% and 5.80%, which has again demonstrated FCIB’s excellent distribution ability and wide coverage scope of investors.