1. Renminbi Fund Operation
Fund Raising
In accordance with Articles of Association of The Export-Import Bank of China, apart from equity, China Eximbank mainly raises funds for its credit business through the issuance of financial bonds in domestic capital market. When there is temporary liquidity shortage, the Bank could either apply for re-loan at the People's Bank of China (PBOC) or make short-term borrowings in inter-bank markets. The Bank's financial bond issuance mainly relies on the e-issuance through PBOC Bond Issuance System. In such a deal, underwriters subscribe the bonds by open bidding and then distribute
the bonds to sub-underwriters. By paying attention to grasp good timing in the market and with a variety of bidding methods, the Bank manages to develop suitable products tailoring to the needs of customers, and works hard to satisfy both its own fund demands and the investors’ requirement for appropriate treasury operations.
More information on the bond issuance of China Eximbank could be found at the web site of China Bond Information Network (http: // www. chinabond.com.cn)
Fund Operation
RMB fund operations at China Eximbank mainly include bond (cash and forward)
transaction, inter-bank deposit, repo and reverse repo, and swaps. Based on the market situation and its funding schedule, the Bank makes a flexible application of the above trading products to ensure its fund supply for credit business, avoid market risks, and reduce losses caused by interest rate and exchange rate changes.By so doing, the Bank makes lots of efforts to increase profits of treasury operations while securing a safe liquidity of treasury.
2. Foreign Currency Fund Operation
Fund Raising
Apart from the equity, the foreign currency of China Eximbank mainly comes from fund-raising in both domestic and international financial markets. Ever since its
establishment, the Bank has been active in exploring effective channels of raising
foreign currency funds with successful issuance of foreign-currency denominated bonds in Japan, Europe and US market, which enables itself to build up wide contacts with global investors and set up a good reputation in international capital markets. Since 2004, the Bank has been exploring the ways of onshore funding of foreign currency through such efforts as organizing syndication and issuing foreign currency bonds, which, while solving liquidity shortage of the Bank itself, serves as useful experiment on effective use of foreign exchange resources both at home and abroad.
Fund Transaction
By observing the principle of safety, liquidity and profitability, the Bank manages
its assets and liabilities through various instruments of treasury operation. The main
operations include money market operation such as inter-bank borrowing and lending, foreign exchange transaction, bond investment and trading in derivative products. By so doing, the Bank has both obtained favorable returns and established wide and agreeable relations with financial institutions both at home and abroad.
3. Foreign Exchange Transaction Service for Clients
China Eximbank started foreign exchange transaction service for clients in 1998. In
September 2004, China Eximbank became one of the first group of banks that were
authorized for derivative transaction qualification in China, and were allowed for
commissioned derivative transaction in both RMB and foreign exchange for clients.
Entrusted by the clients, the Bank provides various transaction services in RMB and
foreign currencies to help clients manage assets and liabilities and mitigate interest
rate and exchange rate risks. With rich expertise and highly-qualified team, China
Eximbank is capable of offering professional advice and business training to clients
and designing solutions for client's different needs.
Services Available
Spot and Forward Foreign Exchange Transaction
Foreign Exchange Swap
Cross Currency Swap
Interest Rate Swap
Structural Swap
Option
Structural Savings
Credit Derivatives
Operation Procedures:
1)The client needs to submit an application to China Eximbank. For deals related to derivatives, a General Agreement on Financial Derivatives Transaction should be signed between the Bank and the client;
2)An Engagement Letter on Swap Transaction should be signed between the Bank and the client;
3)China Eximbank makes inquiry on the international financial market and completes the transaction;
4)China Eximbank and the client sign the Confirmation;
5)The two parties make payments in accordance with the “Confirmation”.
4. Investment Bank Business
Approved by PBOC in September 2007, China EximBank began to provide debtunderwriting
services for non-financial enterprises. Debt instruments that the Bank is eligible to underwrite refers to securities issued by non-financial legal persons in the inter-bank bond market, which requires the repayment of principal and interest within a stated period of time. So far, the instrument includes Commercial Paper and Mid-Term Note (MTN). Under current regulations, securities issued by enterprises must be underwritten by financial institutions. With rich experiences in inter-bank bond market, wide and stable distribution network, proficient and professional team and smooth communication with government, China EximBank is dedicated to delivering excellent underwriting services for enterprises.