Press Release

FCIB successfully acted as lead underwriter on Corporate Bond Public Offering for BBMG Corporation

First Capital Investment Banking (“FCIB”) acted as lead underwriter on the RMB 3 billion Corporate Bond Public Offering for BBMG Corporation (“the Issuer”) and successfully completed the offering on July 13, 2018. This is the first 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 1.5 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 strict regulation and tight credit, FCIB captured a favorable market window when the central bank reduced deposit reserve ratio and market liquidity improved, and finished the 3 billion offering in July. FCIB conducted sufficient inquiry and marketing effort before the issuance. Leveraging on its massive coverage on all kinds of investors, FCIB communicated carefully with each investor and 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. The bond received sufficient subscription from investors. 

In the end of this offering, category 1 was priced at 4.70% with issuance size RMB 1.5 billion, category 2 was priced at 5.00% with issuance size RMB 1.5 billion. The coupon rates were lower than most of the bonds with the same rating recently issued, which was beyond expectation and demonstrated FCIB's excellent sales ability and wide coverage of investors.