Press Release

JPMFC Acted as the Sole Lead Underwriter on the CLO Offering for Shenzhen Rural Commercial Bank Co., Ltd.

As the sole lead underwriter, J. P. Morgan First Capital (JPMFC) successfully completed the CLO transaction for Shenzhen Rural Commercial Bank Co., Ltd. (the Bank) on Feb 3rd, 2015. This is the fifth CLO transaction completed by JPMFC.

The Bank selected the personal loans of SME (small and micro enterprises) owners as the underlying assets, which was under a favorable scheme of supportive policy for SMEs from the State Council and was praised by the PBoC and the CBRC for its innovation and creativity of the deal structure. JPMFC successfully completed the offering on 30th Jan. With the effective and efficient execution and the outstanding capacity of communication and coordination, the deal team won the Bank’s high recognition and compliment.

In order to successfully price the bond, DCM kept in-depth communication with potential investors, closely monitored the market trend, and captured a favorable market window at the end of Jan, despite of tight liquidity. The bond was 1.7 times oversubscribed, and the senior tranche coupon rate was priced at 5.1%, which was about 20bps lower than the market average. The entire issuance work won the Bank’s appreciation.