The FINANCIAL -- Private Placement Preferred Stock of Bank of Ningbo Co., Ltd. is formally listed on Shenzhen Stock Exchange, which is the first preferred stock successfully listing on SZSE since the promulgation of the Guiding Opinions on Implementation of Preferred Stock Pilot by the State Council.
Bank of Ningbo Co., Ltd. started to plan for listing of the preferred stock in 2014, and gained written reply from China Banking Regulatory Commission (CBRC) and China Securities Regulatory Commission (CSRC) on May 29, 2015 and October 27, 2015 respectively, then it efficiently promoted relevant work for listing of the preferred stock, and finally completed the issuance, payment and listing on November 11, 2015, November 16, 2015 and December 9, 2015 respectively. It has successfully realized a breakthrough in capital tools innovation, and become the first bank of successful issuance of preferred stocks in domestic urban commercial banks, according to Shenzhen Stock Exchange.
The issuing volume of the Bank of Ningbo Preferred 01 is RMB 4.85 billion with AAA and AA ratings for the issuer and the preferred stock respectively. CITIC Securities is its lead underwriter, and 13 institutions have participated in the subscription. Its nominal dividend rate for the first interest period is 4.6%, with relevant low financing cost, which is good for the Company to supplement capital and alleviate the financing pressure.
Preferred stocks are featured by high yield, stable return and small risk, etc., it is important for financing innovation of commercial banks and multi-level capital market construction. Related officials of SZSE said, SZSE would continue to optimize the business processes for preferred stocks, constantly improve the service quality and efficiency, greatly support listed companies to use preferred stocks in financing innovation, and make all efforts to provide flexible financing tools and diversified investment channels for relevant market participants.