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Underwriting of Financial Bond (Leasing Company)

Financial bonds for leasing companies are marketable securities issued by leasing companies in the national interbank bond market, where the principal and interest are repaid under given terms. Leasing companies are non-banking financial institutions established under the approval of China Banking Regulatory Commission primarily engaged in financial leasing business.

Financial bonds for leasing companies are one kind of financial bonds. Offering period and type of bond can be flexibly designed according to the financing needs of issuers.

Target Clients
Non-banking financial institutions, established in China (excluding Hong Kong, Macau and Taiwan) under the approval of China Banking Regulatory Commission primarily engaged in financial leasing business, have the requirement to raise funds.

Functions and Features
Issuance of financial bonds for leasing companies is a good solution to raise stable capital of mid-to-long term from wider channels. The new capital can be used for driving the business forward and underpinning the support to small-and-medium enterprises.

ICBC Advantages
1. Strong underwriting: ICBC is a Class A bond underwriting member under the Ministry of Finance, Class I trader of People's Bank of China's open market, the earliest commercial bank in China to be qualified for the underwriting of non-financial corporate debt instruments. For years ICBC has been named excellent underwriter and excellent trader by the Ministry of Finance and People's Bank of China.
2. Rich experience: ICBC has a team of professional staff experienced in bond underwriting, and a comprehensive, effective internal mechanism in place for customer service, credit risk assessment and underwriting execution.
3. Good relationship: ICBC maintains good contact with regulatory authority and good relationship with the investors. ICBC is able to underwrite the financial bonds issued by commercial banks.

Product Price
Offering interest rates for the financial bonds issued by commercial banks depend on the term, credit rating of the customers and market conditions, referencing market price and opinions of regulatory authority.

Service Channel and Hours
Customers are welcomed to contact ICBC directly during office hours, based on own financial requirements.

1. Verify: Customers must supply application documentation to ICBC required by the regulatory authority. ICBC will proceed due diligence, assess credit risk and sign relevant agreements with customers.
2.  Approval: ICBC sends the application documentation to China Banking Regulatory Commission and People’s Bank of China for approval.
3. Issuance: Once approved by China Banking Regulatory Commission, ICBC will proceed to issue the bonds.

Successful Case
In December 2011, ICBC successfully underwrote RMB 1 billion of financial bonds for China Huarong Financial Leasing Company Limited.

Global Market