Press Release

FCIB acted as the sole lead underwriter on corporate bond offering for First Capital Securities Co., Ltd.

Transaction Overview:

FCIB acted as the sole lead underwriter and book runner on corporate bond offering for First Capital Securities Co., Ltd. (”FCSC”) and successfully completed the offering on January 17th, 2018. The bond is composed of two tranches: tranche 1 is 2 year fixed rate bond with size of RMB 600 million and tranche 2 is 5 year fixed rate bond with size of RMB 200 million. The bond is to be listed on the Shenzhen Stock Exchange (“SZSE”).

It’s the first deal issued by FCSC since FCIB was wholly owned. Despite the short time interval, the deal team, working closely with Financial Dep. & Fixed Income Dep. of FCSC, completed the material preparation and communication with regulatory authorities. On December 1st, 2017, FCSC obtained CSRC’s approval. The team’s professional execution and teamwork capability was highly acknowledged by the client.

Starting from 2017Q4, market yields kept increasing as a result of investors prefer risk aversion. Amidst this market environment, the DCM team, working with Fixed Income Dep. of FCSC, carried out sufficient inquiry to seize investors’ demand and optimized the bond structures. The bond was designed into two tranches of 2 year tenor and 5 year tenor separately, and offering size for each tranche is adjustable by claw-back mechanism. By providing alternative options, the bond was actively subscribed by a wide variety of investors.