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MFL's successful issuance of 4 billion Yuan of financial bonds
On May 22, 2018, Minsheng Financial Leasing Co., Ltd.(MFL) successfully issued the first 3-year financial bonds of year 2018 in the interbank bond market through public bidding, with issuance size of 4 billion Yuan and 4.9% final issuance rate, which was supported by a number of financial institution investors based on their 1.8-fold subscription . This is another banner financing move following the successful issuance of MFL's first financial bonds in 2017.
With full preparation for this issuance in the early stage, we, on the one hand, received strong support from regulators by close communication and, which lays a good foundation for the successful issuance; on the other hand, completed the work of road show work for the principal underwriters and investment institutions in advance by visiting one by one to consolidate the orders. Particularly, after completing the filing process of bond issuance in early may, MFL was suddenly hit by the volatility of bond market, and a number of listed companies and private enterprises successively defaulted, which made the market extremely nervous. In such adverse market environment, MFL actively responded to it through multilateral communication, and made a thorough distribution plan. With great support from the principal underwriters, investment institutions, and the major shareholder--China Minsheng Bank, MFL overcame difficulties to complete the issuance with over raised parts, and finally fixed the issuance rate at 4.9% better than that of the comparable bonds of same period and level, which caused great repercussions in the same business. This issuance of financial bonds for raising funds will effectively supplement MFL's medium- and long-term funding sources, optimize the debt structure, and further reduce the financing costs.