Introduction
The issuance of underwritten securities of agreed repayment of principal with interest to financial institutions legally established in the People's Republic of China in the inter-bank bond market.
Features
1. Increase customers' financing channels;
2. Replenish capitals;
3. Cut down financing costs and optimize customers' overall liability structures;
4. Increase capital adequacy ratio.
Term
Subject to customers' needs and market conditions.
Guarantee
The provision of guarantee is subject to customers' needs and market conditons.
Interest rate
Subject to the market
Scope of Application
Legally registered financial institutions with legal person status, including banks, insurance companies, financial companies, securities companies and trust companies.
Application Qualifications
1. If the issuer is a bank: the core capital adequacy ratio is no less than 4%; it should be profitable in the past three years with no material violation of laws and regulations;
2. If the issuer is a financial company: the capital adequacy ratio is no less than 10%;
3. The entrance qualification for other financial institutions will be stipulated separately.
Process
1. Entrust Bank of China as the lead underwriter and sign the amongst underwriters;
2. Accept due researches, establish underwriting syndicates and complete all kinds of issuance documents;
3. Obtain the issuance amount approved by the People's Bank of China;
4. Disclose the offering circular and issue short-term financing bills;
5. After the raised fund is received, the bonds should be held in custody at China Bonds Depository and Clearing Company and the obligatory relationships should be established;
6. According to relevant rules and regulations, follow-up work including continuous information disclosures should be completed;
7. Repay the bond according to the agreement.
|
