Introduction
It is a debt financing instrument issued by Bank of China in the inter-bank bond market in multi-tranche offering as entrusted by non-financial enterprises with corporate capacity, which agree to make repayment of principal with interest within certain term.
Functions
1. Increase of financing channels of short-term working capital for enterprises
2. Reduction of financing costs with no need for guarantee and identified funded projects
3. Regulation of operation of enterprises and establishment of corporate image
4. The flexible financing structure designed according to corporate cash flow, including the financing structure with options
Target Customers
Enterprises that have demands for trade finance, short-term working capital and lower short-term financing costs in China with three consecutive years of business operation and sound corporate governance. Enterprises which issue mid-term bills shall comply with relevant provisions of national industrial policy.
Process
1. Project selection.
2. Project Approval.
3. Due diligence investigation of project and signing of master underwriting agreement.
4. Materials preparation and production procedures.
5. Issuance arrangements.
6. Submission and material feedback.
7. Issuance of mid-term bills.
8. Follow-up management of the project.
Our Advantages
Bank of China, with a high reputation in the international capital market, has established proper partnerships with many major institutional investors and accumulated rich experiences in bonds issuance in international markets, which has been well applied in domestic market. The bank has assisted in drafting the Financial Bond Management Methods, Short-Term Financing Bill Management Methods, etc.
Since the national inter-bank bond market was founded in June 1997, as the first commercial bank to be an issuer in the market, Bank of China has issued the first inter-bank subordinated bonds.
As one of the first pilot lead underwriters of mid-term bills, as of February 28, 2009, Bank of China has successfully issued 14 mid-term bills, and achieved an underwritten amount of RMB 29.7 billion in total, ranking the first in terms of issuance amount and the second in terms of market share. Bank of China, as the lead underwriter, issues mid-term bills for leading enterprises in different industries, such as power, energy, shipping, transportation and automobile, during which Bank of China has accumulated rich experiences.
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