Bond Underwriting

It involves underwriting debt financing instruments of non-financial enterprises (the core product), financial bonds and corporate bonds (the business application procedure for which is the same as that for debt financing instruments of non-financial enterprises). 

Introduction 

Debt financing instruments of non-financial enterprises refer to the negotiable securities that are issued by non-financial enterprises having legal capacity in the interbank bond market, with their principal and interest paid within a specified time limit as agreed. Such instruments include commercial papers, medium-term notes, SME collective notes, super and short commercial papers, private placement notes, and asset-backed notes. 

After being qualified as a lead underwriter of the said debt financing instruments in 2007, the Bank has been providing professional investment banking services to issuers, relying on its rich experience in the interbank bond market, professional and efficient staff, and extensive marketing network. The Bank’s underwriting business has been growing rapidly and steadily in recent years. It has made positive contribution to implementing Chinas economic and financial policies, facilitating industrial upgrading of enterprises, and serving the real economy.  

Business Types 

i. Commercial Paper: It refers to any debt financing instrument issued in the interbank bond market by a non-financial enterprise with the status of a legal person that promises to repay the interest and the face amount on the note no more than 364 days. 

ii. Medium-Term Note(MTT): It refers to any debt financing instrument issued with a fixed maturity date in the interbank bond market by a non-financial enterprise with the status of a legal person that promises to repay the interest and the face amount on the note within a certain term. 

iii. SME Collective Note: It refers to any debt financing instrument issued in the interbank bond market jointly by two (inclusive) to ten (inclusive) enterprises with the status of a legal person by means of uniform product design, security naming, credit enhancement, and registration for issuance, that promises to repay the interest and the face amount on the note within a certain term. The raised amount for such SME collective note by any single enterprise shall not exceed RMB200 million. The registered amount of a single SME collective note shall not exceed RMB1 billion. 

iv. Super and Short Commercial Paper: It refers to any debt financing instrument issued in the interbank bond market by a   high credit-rated non-financial enterprise that promises to repay the interest and the face amount on the note not more than 270 days.   

v. Private Placement Note: It refers to any financing instrument issued in the interbank market by a non-financial enterprise with the status of a legal person. The private placement note is issued to and negotiated among the specialized institutional investors. 

vi. Asset-Backed Note: It refers to any debt financing instrument backed by a specified pool of underlying assets and issued by a non-financial enterprise with the status of a legal person in the interbank bond market that promises to repay the interest and the face amount on the note within a certain term. Underlying assets refer to properties, property rights, or the portfolio of properties and property rights, which can generate predictable cash flows and comply with relevant laws and regulations, with ownership clearly defined. Underlying assets shall not be subject to any guarantees, such as mortgages and pledges, or other rights related restrictions.  

Business Application 

All non-financial enterprises with the status of a legal person come from industries not subject to government restrictions, and maintain sound business operations, are welcome to contact the Bank. 

Business Application Procedure