JPMFC acted as the joint lead underwriter on the NPL ABS Offering for Bank of China Limited
As the joint lead underwriter, J.P. Morgan First Capital (“JPMFC”) successfully completed the NPL ABS transaction for Bank of China Limited (“the Issuer”) on December 21st, 2016. This is the 16th credit asset securitization transaction as well as the first NPL ABS transaction led by JPMFC.
The underlying asset is non-performing corporation loans, consisting of 304 loans by 119 borrowers, with an outstanding principal of RMB 2.93 billion. During the deal execution process, the deal team cooperated with the Issuer and the other intermediary agencies, completed due diligence of the 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 4.50%. This deal has again demonstrated JPMFC’s strong distribution ability and wide coverage scope of investors.