OREANDA-NEWS. February 15, 2013. In recent years, major opportunities unfold for commercial banks to propel their investment banking business, driven by the demand from customers for investment banking services in mergers & acquisitions (M&A), equity finance and financial consultancy, reported the press-centre of ICBC. 

There are three reasons behind the demand: Firstly, the total non-credit based financing increases; Secondly, the consolidation and restructuring of industries in China gather pace; and thirdly, with more corporate clients "going global", capital operation is increasingly active. In 2012, ICBC expanded investment banking services leveraging the advantage as a commercial bank. The Bank provided corporate clients with a wide spectrum of finance services and best investment products in line with the changes in market and customer needs.

That included investment banking services for 140 equity finance projects, amounting to nearly RMB 50 billion. In the delivery of M&A services, last year ICBC participated in 600 M&A projects involving a total of more than RMB 100 billion. Meanwhile, ICBC's financial advisory services also witnessed strong growth, especially advisory on structured finance, debt restructuring and overseas investment.

ICBC's growing investment banking business has played an increasing role in helping customers expand capital base and fueling the growth of commercial banking business. In equity finance, ICBC acts as the administrating bank for private placement and provides a range of services (project referral, fund raising, management after investment) for dozens of respected Chinese and overseas private placement fund management companies. Together with these companies, ICBC offers services for corporate clients in capital operation activities such as Pre-IPO, public offering, back-door listing, asset injection, mezzanine finance, private placement and cross-border M&A. In M&A services, ICBC actively involves in the mergers and acquisitions of conventional industries and supports the development of emerging industries such as clean energy, modern agriculture and tourism.

ICBC remains as a dominate player in providing "advisory + finance" service for Chinese companies' overseas acquisitions. ICBC M&A services are available in China and overseas and are well received by all customers. In financial advisory services, ICBC looks for low-cost alternative in order to provide more diverse solutions for customers to raise capital. Another focus is to expand the financial advisory services and products by seeking opportunities to offer advisory services on corporate debt restructuring and greenfield investment outside China.

In investment banking, playing the main consultant role in large deals constitutes not only an important option for business expansion but also a direct reflection of market dominance and overall strength. In 2012, ICBC involved in many key projects at home and abroad of high technological demand and strong market influence, and provided services to more cross-border capital operation projects, projects related to industry pacesetters and projects which attracted high measure of market concern.

In equity finance, ICBC successfully launched the first large equity trust fund to support the upgrade of China's agri-produce logistics industry, the first cross-border M&A fund for the customer to acquire overseas engine manufacturing technology. In M&A service, ICBC provided advisory service to a large central enterprise for its overseas acquisition, for the first time ICBC provided advisory service for a customer to acquire financial assets overseas and mandated by an overseas listed company as seller's consultant. In financial advisory, ICBC played the consultant role to help a company restructure its debt and achieved win-win between all parties, namely local government, creditor, employees and the restructuring party.