JPMFC acted as the Lead Underwriter on the CLO Offering for Zhengzhou Bank Co., Ltd.
As the lead underwriter and book runner, J.P. Morgan First Capital (“JPMFC”) successfully completed the CLO transaction for Zhengzhou Bank Co., Ltd. (“the Issuer”) on December 29th, 2016. This is the 18th credit asset securitization transaction led by JPMFC, the 1st CLO deal of Zhengzhou Bank, and also the 1st CLO deal of Henan province in which the issuer is located.
During the deal execution process, JPMFC helped the bank and coordinated the other intermediary agencies perform sufficient feasibility analysis, design the deal structures, prepare all application documents and effectively communicated with regulatory authorities. As a result, the transaction was approved very smoothly and quickly by the authorities, which was highly recognized by the client.
The market yields kept increasing drastically as a result of both tight liquidity and negative market sentiment at the end of the year. In spite of this, the DCM team successfully issued the deal in the last week of December, which was considered remarkable by market players. The coupon rate for tranche A was priced at 4.70%, and the rate for tranche B was priced at 5.00%. This deal has again demonstrated JPMFC’s strong distribution ability and wide coverage scope of investors.