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Small-and-Medium Enterprise Collective Note
 
1. Overview
Small-and-Medium Enterprise Collective Note describe bonds issued by three or more SMEs in the inter-bank bond market under the model of unified name and guarantee, separate liabilities and collective issuance. 

2. Features
Three or more SMEs issue a SMECN under the same name and guarantee;
Financial institutions enhance the credit and issue the bond as a collective debt financing tool;
The bills enable SMEs to shatter the bottlenecks of low financing levels and poor bond liquidity, and generate finance directly from the bond market through credit enhancement;
The bills help SMEs to reduce financing costs and improve financial structuring.  

3. Service description

As agreed with clients, CMB provides a series of value-added specialist services for the issuance of collective debt financing instruments. These comprise organization, coordination, and supervision and include client access, due diligence investigation, issue planning, credit management, registration and issuance, and follow-up management.

As the financial advisor, CMB advises target enterprises on various financing areas such as finance, internal management and business models, and instructs them on how to establish standard operating procedures with the aim of meeting issuance requirements and improving operation and management capabilities.

Underpinned by its strong capital base and rich experience in the bond business, CMB is well-placed to offer high-quality and efficient end-to-end services as a lead underwriter of collective debt financing instruments.  

4. CMB's advantages

Strong qualifications: CMB leads China's banking industry in terms of underwriting value as a lead underwriter, and is highly regarded in the industry. CMB is one of the first six lead underwriters of debt financing instruments for SMEs under NAFMII's pilot promotional program for SME bonds, and is also one of the first lead underwriters experimenting with the issuance of collective debt financing instruments for SMEs.

Issue pricing: As a lead bond underwriter, CMB enjoys the industry's strongest pricing power to issue SMECN with a lower interest rate than comparable financing tools, helping customers minimize issue cost.

Issuance planning: CMB employs a dedicated team of high-caliber financial advisors to optimally plan for the issuance of debt financing bonds, and has built an extensive network of high-value customers, placing the bank at an advantage especially in an adverse bond issuance environment.

Service team: CMB was the first bank to set up an Investment Banking Department and implement a model of underwriting debt financing instruments involving HQ direct sales and close coordination between the head office and branches. The bank boasts a strong team of experienced and high-caliber professionals. All members of the team have a master's degree or above and extensive experience in investment banking, with two-thirds having studied overseas. CMB's high-quality application materials help shorten the time of approval by NAFMII and facilitate bond registration and issuance.

Note:
All the contents stated above are for your reference only. Please consult the local branch of China Merchants Bank for further information. China Merchants Bank reserves the ultimate right of interpretation for the contents in this page.