Press Release

BBMG Corporation Corporate Bond (Public Offering, 1st tranche)

First Capital Investment Banking (“FCIB”) acted as lead underwriter on the RMB 2 billion Corporate Bond Public Offering for BBMG Corporation (“the Issuer”) and successfully completed the offering on January 10th, 2019. This is the second tranche of the total RMB 5 billion quota. The bond consists of two categories: category 1 is 3+2 year fixed rate bond with size of RMB 0.5 billion and category 2 is 5+2 year fixed rate bond with size of RMB 1.5 billion. The bond is expected to be listed and traded on the Shanghai Stock Exchange (“SSE”).

BBMG Corporation is principally engaged in the manufacture of building materials supplemented by property development and property investment and management. BBMG is listed both on the H share and A share market, with 2 subsidiaries listed on the A share market. Under the strict control of the real estate industry and environmental inspection of the cement industry, BBMG was negatively affected. Under this circumstance, the professional execution and coordination effort of the project team was highly acknowledged by the Issuer.

FCIB and CSC（China Securities Cooperation）acted as co-lead underwriter of this bond offering. FCIB conducted sufficient inquiry and marketing effort before the issuance. Leveraging on its massive coverage on all kinds of investors, FCIB fully discovered the demand for this bond offering, and set a reasonable pricing range considering the market changes, the inquiry results and recent coupon rates. In order to extend flexibility during issuance, the DCM designed double tranche structure simultaneously. Under the background of continued poor policy transmission and volatility in the bond market, FCIB captured a favorable market window when the central bank reduced deposit reserve ratio and market liquidity improved, and finished the issuance at the beginning of 2019.Weighing interest rates and liability structure, this offering achieved the best financial choice for the issuer.

In the end of this offering, category 1 was priced at 3.73% with issuance size RMB 0.5 billion, category 2 was priced at 4.07% with issuance size RMB 1.5 billion, which demonstrated FCIB's excellent sales ability and wide coverage of investors.