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Underwriting of Mid-Term Notes

I. Business Description
Mid-term notes (“MTN”) refer to the debt financing instruments that are issued by the legal non-financial enterprises in the inter-bank bond market in installments pursuant to a certain plan and shall be repaid (both principal and interests) during a specified period of time.
The term of MTN is generally longer than 1 year. At present, MTN in the market generally have a term of 3 years, 5 years, 7 years and 10 years (or above) 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 medium-term direct financing demand and sound operating results.

III. Features and Advantages
The product boasts simple registration procedures and low access threshold. The customer only needs to register at traders association. It can meet the customers’ medium-term financing demand and help the customers raise stable and low-cost funds in the inter-bank market to support their production and operating activities.

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 risks, and execution of the 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 traders association for consideration.
3. Product issuance: after the project is reviewed and adopted by traders association, the latter will issue the 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 the Bank has accumulatively issued more than RMB500 billion worth of MTN for nearly 100 enterprises. Its customers included both central enterprises such as the Ministry of Railways, the CNPC, China Telecom, China Guodian Corporation, the FAW Group and Shenhua Group Corporation, and a large number of local high-quality enterprises.

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.

Global Market