ZDS has successfully completed the issuance of “2013 Inner Mongolia Baotou Steel Union Co., Ltd. Corporate Bond (third tranche)” as the sponsor and sole lead underwriter. With tranche size of RMB 1.5 billion and maturity of three years, the final coupon rate of 4.75%. The issue of bond has been set up in a perfect timing and is much lower than the issuer has expected. This excellent underwriting ability has won us favorable comments and praise from the issuer.

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”).

The period prior to the issue of bonds market financing area tends to be easing and the bond market has enjoyed a favorable environment of declining market yield. Since the beginning of April, 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, along with the issuer, decided to launch the issuance of the third tranche in late April. The coupon rate was finally and successfully set at 4.75%.