JPMFC acted as the joint lead underwriter on the NPL ABS Offering for China Merchants Bank Co., Ltd
As the joint lead underwriter, J.P. Morgan First Capital (“JPMFC”) successfully completed the NPL ABS transaction for China Merchants Bank Co., Ltd (“the Issuer”) on December 22, 2016. This is the 17th credit asset securitization transaction as well as the 2nd NPL ABS transaction led by JPMFC in 2016. The underlying asset is non-performing individual business loans, consisted of 1,440 loans by 546 borrowers, with an outstanding principal of RMB 1.15 billion. During the deal execution process, the deal team cooperated with the Issuer and the other intermediary agencies, completed due diligence of asset pool, filing and issuing, which was highly regarded by the client.
Entering December, The market yields kept increasing greatly as a result of both tight liquidity and negative market sentiment triggered by a sizable default by a security house. Despite of this, the DCM team successfully priced the deal at a full size, which is considered very remarkable by the market players. The coupon rate for tranche A was priced at 4.38%. This deal has again demonstrated JPMFC’s remarkable distribution ability and wide coverage scope of investors.