Press Release

FCIB acted as lead underwriter on RMB 4.5 billion Corporate Bond Public Offering for BBMG Corporation

First Capital Investment Banking (“FCIB”) acted as lead underwriter on the RMB 4.5 billion Corporate Bond Public Offering for BBMG Corporation (“the Issuer”) and successfully completed the offering on January 9th, 2020. This is the first tranche of the total RMB 8 billion quota. 

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. The bond passed the preliminary review of the SSE and the review of the CSRC with no feedback. FCIB 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 the end of this offering, the issuance size of the category 1 with 3+2 year term was 0, which was all reallocated to the category 2 with 5+2 year term. The issued size was RMB 4.5 billion and the bond was priced at 3.99%. The coupon rates hit a record low and were lower than all of the bonds with the same size and maturity which were issued during the past three years. The issue of the bonds provided the issuer with long-term funds at a lower financial cost, which was highly recognized by the Issuer and demonstrated FCIB's excellent sales ability and wide coverage of investors.