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Financial consultation on the issuance of corporate bonds
 
1. Overview
CMB offers financial consultation on the issuance of corporate bonds.

2. Target customers
The service targets customers that are planning or applying to issue corporate bonds according to government regulations. Currently, customers must meet the following criteria:
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    The raised fund is used for purposes that comply with the government’s industry policy and industry development plan;
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    Net asset value is at least RMB60 million for a limited liability company and RMB30 million for a joint stock company;
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    The company has made a profit over the past three consecutive fiscal years;
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    The company has a healthy cash flow and a strong debt-payment ability;
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    The company has not violated any applicable laws or rules over the past three years;
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    The company has raised funds in full and as planned from the previous issue of a corporate bond;
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    The company has not delayed repaying principles and interest on issued corporate bonds;
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    The company’s balance of corporate bonds must not exceed 40 percent of its net asset value. When used for fixed asset investment, the cumulative amount of corporate bond must not exceed 30 percent of the total project investment;
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    The corporate bond is used to support the key sectors defined by the National Development and Reform Commission based on the government’s industry policy, industry development plan and macro-control needs, and complies with the commission’s requirements on minimum net asset value and minimum and maximum issue values;
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    The issuance of corporate bonds complies with applicable laws and regulations.
3. Service description
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    Based on customers’ financial status and fund demands, customizing bond issuance plans that specify the issue value, price, term, period and timing, and utilization of the raised fund;
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    Geared to regulatory policy and market changes, advising customers on bond issuance and helping to revise the issuance plan;
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    Offering services such as credit structure arrangement, debenture and corporate bond trusts, and guarantee agency services;
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    Communicating with intermediary agencies related to bond issuance, such as credit rating agencies, lawyers and auditors, to act in the best interests of customers;
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    Helping customers communicate effectively with regulatory authorities to progress the review and approval procedures relating to bond issuance;
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    Promoting bonds to potential subscribers, and obtaining the best issue price for customers.
4. CMB's advantages

As a leading market maker in the inter-bank bond market, CMB is well-positioned to help customers issue corporate bonds thanks to its strong capital base and long-term partnerships with numerous institutional investors;

Powered by rich experience in making markets, market insight, and strong pricing power, CMB can fix a suitable issuing interest rate for corporate bonds, form markets for customers in line with government policies, increase bond liquidity and expand the issuer’s influence; CMB’s high-caliber team is able to offer high-quality financial consultation services.

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.