ZDS has successfully completed the issuance of “2013 Inner Mongolia Baotou Steel Union Co., Ltd. Corporate Bond (second tranche)” as the sponsor and sole lead underwriter. The tranche size is RMB 1.5 billion, with three years maturity and the coupon rate of 4.98%.

Established in June 1999, Inner Mongolia Baotou Steel Union Co., Ltd. has a controlling shareholder which is Baotou Steel Group Company and an ultimate controller which is the government of Inner Mongolia autonomous region. Within Inner Mongolia, the issuer is the first corporate to achieve an annual sales of more than RMB 40 billion. While being the largest listed steel company and the largest plate steel producer of western China, the issuer has the most complete seamless tube production base in China and the biggest steel rail production base in the world. In addition, the issuer is the designated rail provider of the China Railway Corporation (the successor of “the Ministry of Railways”).

Since the beginning of 2015, the bond market has enjoyed a favorable environment of declining market yield and loose liquidity. After the New Year’s Day, ZDS actively reached out to various kinds of institutional investors and communicated with them thoroughly on our issuance. After conducting comprehensive analyses concerning bond market interest rates, market liquidity and demand of institutional investors, ZDS, together with the issuer, decided to begin the issuance of the second tranche in late January. The coupon rate was finally and successfully set at 4.98%. The coupon rate is much lower than the issuer has expected, which not only adequately satisfied the issuer’s  financing needs, but also saved a large amount of financial cost for the issuer.