Fujian Investment & Development Group Co., Ltd., whose lead underwriter is IB, succeeded in issuing its ultra short-term financing bonds (Stage III) of 2016. This issue lasts for 270 days with a total amount of 1 billion yuan, a coupon rate of 2.76% and the lowest price among regional state-owned enterprises with same rating and same period concerning short-term financing bonds. It is said that this is the first DFI business in Fujian province and the first issue of debt financing tools registered in DFI of Fujian Investment & Development Group Co., Ltd.
DFI, short for Debt Financing Instruments and also known as Shelf Issuance Qualification, are new debt financing tools released in February, 2016 by National Association of Financial Market Institutional Investors according to classification management mechanism of debt financing tools. After acquiring DFI qualification, the enterprise can register four types of debt financing tools, namely, ultra short-term financing bonds, short-term financing bonds, medium-term notes and perpetual notes, and make independent issuance within the valid term of registration and provide more convenience in their direct financing in order to reduce financing costs.
According to new regulations about classification management mechanism of China interbank market debt financing tools, Fujian Investment & Development Group Co., Ltd. should meet the following requirements in order to acquire DFI qualification: total asset should exceed 100 billion yuan, asset-liability ratio should be no less than 85% and rate of return on total asset should exceed 3% (it should meet the above requirements at the same time). As the lead underwriter of DFI registration of Fujian Investment & Development Group Co., Ltd, IB actively coordinates several intermediaries including accounting firm, law firm and rating firm, succeeds in completing the DFI registration efficiently in strict accordance with policies and guidance of National Association of Financial Market Institutional Investors, thus making the group among the first batch of regional state-owned enterprises with DFI Shelf Issuance Qualification. All of these diversify financing methods of enterprises in Fujian and significantly improve their financing efficiency and flexibility.
In recent years, IB has actively given full play to its professional advantage in underwriting debt financing tools, expanded enterprises’ financing channels and improved their debt structure, so as to better serve the real economy. Data revealed that by the end of June, IB’s lead management of debt financing tools to non-financial enterprises amounted to 236.7825 billion yuan. In terms of issuance size, it ranked 3rd in the market , 1st among banks of the same type and 1st among shareholding banks for four consecutive years from 2012 to 2015.