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2015th Beijing Shunxin Agriculture Co., Ltd. RMB 1.0bn corporate bond issuance (

Updatetime:2015-05-15    Click:

ZDS has successfully completed the issuance of “2015th Beijing Shunxin Agriculture Co., Ltd. Corporate Bond (First tranche)” as the sponsor and sole lead underwriter. With tranche size of RMB 1 billion and maturity of 5NP3 years, the final coupon rate of 4.50%. The issue of bond has been set up in a relatively good timing and is lower than the issuer has expected. This excellent underwriting ability has won us favorable comments and praise from the issuer.

Established in September 1998, Beijing Shunxin Agriculture Co., Ltd is the first agricultural listing Corporation. As a national key agricultural industrialization leading enterprises, the company mainly engaged in pig breeding, pig butchering and meat processing, liquor brewing, water conservancy, construction and real estate business. As one of the first batch leading companies of agriculture industrialization and the first agriculture list co of Beijing, Shunxin Agriculture has nurtured five “Famous Chinese Trademarks”, namely, “Niulanshan (liquor)”, “Pengcheng (butchering and meat)”,  “Shunxin”, “Ningcheng (mid & high-end liquor)” and “Xiaodian (pig breeding)”. Seven of its trademarks including “Shunxin Agriculture”, “Pengcheng”, and “Xiaodian" are listed as the “Provincially Famous Trademarks”. The Company’s honors and awards include “China Top-500 Manufacturer”, “Beijing Most Influential Company”, “Beijing Top-100 Enterprise”, and “Company of Excellence for Beijing Olympic Games and Paralympics Games”. The Company tightly embraces its core value of ‘grand agriculture’ and delves in-depth development in produce processing and neo-village construction. It plays an active role in China’s pilot moves for modern agro-industrialization and seeks win-win solutions through the balanced development between capital operation and production business.

Early before the issuance of corporate bonds, Zhong De Securities had successfully accomplished the A-share private placement for Shunxin Agriculture Co., Ltd. (“Shunxin Agriculture” or “the Company” as the sole sponsor and lead manager in June 2014. This private placement raised CNY1.743 billion, which is earmarked for “Niulanshan” alcohol R&D center and production upgrade (Phase 1 & 2), cooked meat production upgrade, alcohol brand’s market promotion, and working capital replenishment. This successful accomplishment not only substantially reduced the company's debt level, but also laid a good foundation for the development of the corporate bond business this time.

The period prior to the issue of bonds market financing area tends to be relatively easing and the bond market yields downward. Since the beginning of May, 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 the middle of May. The coupon rate was finally and successfully set at 4.50%.

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