Orient Bangxin Explores New Financing Model
Source: 21st Century Business Herald
Recently, Orient Bangxin Rongtong Holding Co., Ltd. (“Orient Bangxin”)’s Changchun Branch (“Changchun Bangxin Micro-loan”) and Qingdao Branch (“Qingdao Bangxin Micro-loan”) successfully issued the first domestic microfinance private placement bonds in Qilu Equity Trading Center, which were fully subscribed by Qilu Bank.
The proposed issuance amount of the private placement bonds by Changchun Bangxin Micro-loan and Qingdao Bangxin Micro-loan respectively was RMB 50 million, under the name “Private Placement Bonds of Changchun Bangxin Micro-loan Co., Ltd. 2014” (“Bangxin No. 1”), and “Private Placement Bonds of Qingdao Bangxin Micro-loan Co., Ltd. 2014” (“Bangxin No. 2”). The maturity of the bonds is 36 months, and the coupon rate is 9% (quarterly payment). Dongxing Securities Co., Ltd. is the underwriter, and China United SME Guarantee Corporation is the guarantor. The dual RMB 50 million bonds went through a single registration procedure, but will be issued in installments.
As of today, Qingdao Bangxin Micro-loan has issued two tranches of private placement bonds, and successfully raised RMB 50 million. The bonds were 100% subscribed by Qilu Bank. Changchun Bangxin Micro-loan has issued the first tranche of bonds and raised RMB 30 million.
The private placement bonds’ successful issuance and complete subscription manifests the banks’ recognition for Orient Bangxin and Bangxin Micro-loan, and it signifies domestic microfinance companies’ crucial progress towards reform and innovation in financial policies, as well as exploration of new business models for micro-loan financing. Furthermore, it marks a higher level of performance by micro-loan companies to break through the financing bottle neck and improve service quality for small and micro businesses, and agriculture, rural areas and farmers (“San Nong”).
Changchun Bangxin Micro-loan’s registered capital is RMB 150 million. Because of its fully compliant operation, rigorous risk management and remarkable performance, Changchun Bangxin Micro-loan has won the “2013 Best Social Responsibility Award for China’s Microfinance Industry”, “2013 China’s Top Hundred Most Competitive Microfinance Companies Award”, “Vice President Member of the Jilin Micro Credit Company Association”, and “2014 Five Star Micro-loan Company of China”, etc..
Qingdao Bangxin Micro-loan’s registered capital is RMB 200 million. Due to excellent performance, Qingdao Bangxin Micro-loan has won the “2013 China’s Top Hundred Most Competitive Microfinance Companies Award”, and “Best Product Design in China’s Microfinance Industry Award”, making it the only micro-loan company in Shandong Province to have had the honor to win both awards.
Orient Bangxin was founded on 21 December 2012 in Beijing as one of the ten holding companies of China Orient Asset Management Corporation. Orient Bangixn is a national comprehensive service provider of small and micro finance that combines micro-loan, small loans fund, Internet financing and IT services. As of today, Orient Bangxin has 24 Bangxin micro-loan branch companies and two holding companies: Orient Bangxin Capital Management Co., Ltd. and Orient Bangxin Financial Technology Co., Ltd.. Orient Bangxin’s registered capital is RMB 5.67 billion, and has branched out to 20 provinces in China as the country’s biggest micro-loan company group. Orient Bangxin is dedicated to serving small and micro businesses, San Nong issues (agriculture, rural areas and farmers), self-employed businesses, and micro-credit companies or individuals. It is determined to become China’s leading comprehensive Internet microfinance service provider.
