Press Release

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

2017-08-18

J.P. Morgan First Capital (“JPMFC”) acted as lead underwriter on the RMB 3 billion Corporate Bond Private Offering for BBMG Corporation (“the Issuer”) and successfully completed the offering on July 14, 2017. The bond is listed on the Shanghai Stock Exchange (“SSE”).

Real estate industry has been restricted by more regulations since 2016 H2. The issuer’s debt financing was highly restrained due to BBMG’s influence in real estate business. The deal team has efficiently communicated with regulatory authorities several times via various channels. Finally the deal was approved in September 2016. Among all the companies that got approvals around the same time, BBMG Corporation had the highest revenue share in real estate. Deal team’s professional execution and coordination capability was highly acknowledged by the Issuer.

Financial regulations are released continually while monetary policy tightens since April 2017. Consequently, the money market interest rate has been increasing with large scale of abortion of launching. Central bank eased market liquidity on mid-late June, which increased institutional investors’ demand for bond allocation. The DCM team captured the favorable window due to better expectation of capital market, the issuance was completed in its full size of RMB 3 billion. The financing cost was therefore locked up and the Issuer was free from rising financing cost in the future. The coupon rate was lower than yield rate of existing BBMG corporate bond in secondary market (2+1 term bond was priced at 5.20% with issuance size RMB 1.25 billion; 3+2 term bond was priced at 5.30% with issuance size RMB 1.75 billion),which was highly commended by the Issuer.

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