The first tranche of the 2014 Zhejiang Kasen Industrial Group Co., Ltd. (“Kasen Industrial” or “the Company”) SME Private Placement Exchangeable Bond issuance was accomplished successfully, in which ZDS was engaged as the sole underwriter. The size of this bond offering is CNY 216 million with 2 year maturity.

Kasen industrial is the main business entity of the HongKong listed company Kasen Internatioanl Holdings Limited (00496.HK) in China. It is one of the largest leather products and soft furniture manufacturers in China. The company obtains higher market position and advanced technologies relative to its competitors in the industry. With the strong operational performance of Kasen Industrial and the excellent underwriting capability of ZDS, the project team seized the favorable market window and triggered the demand of potential investors. ZDS successfully completed the issuances and achieved the issuer’s goal of financing before the end of the year despite the tight financial market conditions with the rising interest rate.

This is the first case of private placement exchangeable bond issuance by a private enterprise for ZDS after the issuance for Haining Asset Management Company on August 2014 as the sole underwriter, which is regarded as the very first Private Placement Exchangeable Bond issuance for a state-owned company. Moreover, this is the fifth case of SME Private Placement Exchangeable Bond issuance in the market.  Since the launch of SME Private Placement Exchangeable Bond by Shenzhen Stock Exchange in 2013, ZDS has become the first investment bank who obtains Private Placement Exchangeable Bond underwriting cases for both state-owned company and private enterprises. This offering is highly recognized by the issuer and received high favorable comments from the market.