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I. Business Description
Ultra-short-term financing bond refers to the short-term financing bonds with a maturity of less than 270 days issued by the legal non-financial enterprises with relatively high credit ratings in the inter-bank bond market.
Ultra-short-term financing bond is one of the non-financial enterprises’ debt financing instruments. The issuer can independently decide the issuance term within a period of no longer than 270 days (inclusive) based on its financing needs and arrangement of the fund uses. At present, ultra-short-term financing bonds in the market generally have a term of 90 days, 180 days and 270 days etc.
II. Target Customers
It is applicable to the legal non-financial enterprises that are established within the territory of the People’s Republic of China (excluding Hong Kong, Macau and Taiwan) and have short-term demand for working capitals and a relatively high credit rating.
III. Features and Advantages
The product boasts simple and convenient registration procedures. The customer only needs to register at traders association. Additionally, the product is featured by simple information disclosure, high registration efficiency, convenient issuance formalities and flexible use of funds. It can meet the customer’s short-term financing demand, and the funds shall not be used for long-term investment.
IV. ICBC Advantages
1. Solid underwriting strength: ICBC is a Class-A member for underwriters for the treasury bonds issued by the Ministry of Finance, a top notch trader in the open market business of the People’s Bank of China and the first commercial bank that was awarded the qualification of underwriting debt financing tools for non-financial enterprises in China. It has been recognized as the excellent underwriter and excellent trader by the Ministry of Finance and the People’s Bank of China for many times.
2. Rich underwriting experience: ICBC has a professional underwriting service team and abundant bond underwriting experience. It has established sound and effective internal operating mechanism in respect of customer service, examination and assessment of credit risk, and execution of underwriting transactions.
3. Smooth communication and cooperation: ICBC has established and maintained sound communication and coordination with the regulators as well as favorable business cooperation with investors, and is able to ensure smooth issuance of the related products.
V. Price
The issuance price of the product is determined based on the term of issuance, the customer’s credit rating and the market environment.
VI. Service Channel and Time
The customer may directly contact the Bank for handling this business during office hours based on its financing needs.
VII. Sign-up
1. Project examination: the customer shall submit the application materials to the Bank based on requirements of the regulatory departments, so that the Bank could carry out the due diligence investigation and credit risk examination on the customer.
2. Registration and declaration: the Bank will present the project registration and declaration materials to the traders association for consideration.
3. Product issuance: after the project is reviewed and adopted by traders association, the latter will issue a registration notification. The customer could select an “announcement date” during the next 2 months after it received the notification to issue the announcement, and complete the issuance on the “issuance date”.
VIII. Case Illustration
Over the recent years, the Bank’s bond financing instrument lead underwriting business kept strong growth. During 2007-2012, ICBC has been ranked the top among the Chinese bond lead underwriters by the size of bond lead underwriting business for six consecutive years , and ICBC has successfully issued more than RMB300 billion worth of ultra-short-term financing bonds for a number of enterprises. Our corporate customers included CNPC, State Grid and China Unicom etc.
Note: Information herein is for reference only. Please refer to announcements and regulations of local branches of ICBC for further details. ICBC retains the ultimate interpretation rights.
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