JIC kicked off its first ever financial bond issuance by inviting its bids through a tender in the interbank market on Jan 20, 2015. The five-year, fixed-rate bond was RMB 1 billion in its aggregate amount, with a 5.10% rate, which was 90BP lower than its then-current lending rate. The issue was 3.48 times subscribed, indicating a positive market response and reflecting the fact that the bond was well received in the capital market.

As part of the company’s marketing development strategy, JIC has launched a series of funding initiatives in recent years, including, most importantly among others, debt financing. On December 1, 2014, People’s Bank of China approved the company’s proposals of its serial debt financing up to RMB 3 billion in the interbank bond market. With respect to its bond issuance, both the company’s corporate credit and debt ratings were AAA with a stable outlook.

As its first public issuance of financial bonds in China from a non-financial corporate, the bond is being successfully tested as a business model as well as an innovative debt financing tool. The company’s debt financing over the interbank market is very helpful in getting the company have close link with the domestic capital market. The bonds successful issuance will provide a solid basis and set the standard of company’s follow-up debt financing efforts. More importantly, with new financing channels in place, the company is enjoying wide access to capital, which will facilitate the company’s efforts in implementing its strategic plan (Stage III) and achieving the objectives thereof.