JPMFC acted as the underwriter on the Auto ABS Offering for Jincheng Bank Co., Ltd.
As sole lead underwriter and bookrunner, J.P. Morgan First Capital (“JPMFC”) successfully completed the Auto ABS transaction for Jincheng Bank Co., Ltd. (“the Issuer”) on January 18th, 2017. This is the 19th credit asset securitization transaction led by JPMFC as well as the 2nd tranche of the RMB 8.0 billion package which we helped the client register with PBOC.
During the deal execution process, JPMFC helped the bank perform sufficient feasibility analysis, designed the deal structures, prepared 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.
Despite of tight liquidity on the money market towards Chinese New Year, the DCM team successfully priced the deal as soon as the liquidity was improved to avoid further uncertainty. The coupon rate for tranche A1, tranche A2 and tranche B was priced at 4.20%, 4.49% and 4.65% respectively with oversubscription, which was beyond the Issuer’s expectation. This deal has again demonstrated JPMFC’s remarkable distribution ability and wide coverage scope of investors.