ICBC has been proactively responding to the trend of financial disintermediation and corporate deleveraging, and meeting financing demand through non-credit financing tools such as bond sales, which further expanded channels for corporate financing. Statistics show that in the first half year of 2016 ICBC underwrote non-financial bonds worth more than RMB 280 billion, which is RMB 64 billion or 30% higher than the same period last year.
Since the National Association of Financial Market Institutional Investors launched the new debt financing instruments (DFI) on February 19, ICBC has been implementing categorized management of bond issuance by providing green channel for qualification review of premium issuers and optimizing business procedure, which has enhanced direct financing efficiency and decreased financing cost for businesses. For example, with ICBC as the lead manager, CNPC's RMB 15 billion medium-term notes (MTN) have been the largest DFI bond issuance in the market so far.
In addition, by leveraging strengths in issuance and cross-border services, ICBC has actively explored Panda Bond business and successfully issued the first tranche of public placement panda bonds for SMIC worth RMB 600 million, creating a record-low issuance price of non-financial panda bond in China’s inter-bank bond market. ICBC has also issued private placement panda bonds worth RMB 4 billion for Daimler AG, which is the largest single non-financial panda bond issuance, marking the Bank’s full coverage of public and private placement panda bonds for non-financial enterprises.
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