OREANDA-NEWS. March 13, 2014. The first issue of 2014 non-open tailored debt financial tool of Fuzhou Urban and Rural Construction and Development Corporation, totaling RMB 500 million, for which Industrial Bank Co., Ltd. served as the lead underwriter was successfully put on sale in the inter-bank bond market, with an annual interest rate of 6.7% and a term of 3 years.

This was the first time that such special debt financing tool for supporting indemnificatory housing was issued in Fujian Province. Not only did it solve some financial needs of the province for construction of indemnificatory housing, but also effectively extended the financing channel and pushed the innovative development of the bond market in the province vigorously.

As learnt by the reporter, in order to carefully implement the requirement of the CPC Central Committee and the State Council on accelerating the construction of indemnificatory housing project and speed up the construction of indemnificatory housing of the province during the “12th Five-year Planning” period, Fujian Provincial Committee of CPC and Province Government attached great importance to and actively sought the issue of tailored debt financing tool for indemnificatory housing, and received the great support of the Head Office of the People’s Bank of China and the National Association of Financial Market Institutional Investors (NAFMII). With the vigorous push of Fuzhou Central Sub-branch of the People’s Bank of China and concerted collaboration of government agencies at all levels, on July 19, 2013, the PBC Head Office, NAFMII and Fujian Provincial Government entered into a strategic agreement, under which the province was successfully listed into the support scope of tailored debt financing tool for indemnificatory housing.

On September 29, 2013, IB Fuzhou Branch smoothly accomplished the due diligence over the tailored debt financing tool for indemnificatory housing, worth RMB 6.8 billion, for which Fuzhou Urban and Rural Construction and Development Corporation was the issuer, and reported the collected material to the NAFMII. On January 28, 2014, the first issue of the program, totaling RMB 500 million was successfully put on sale in the inter-bank bond market, with an annual interest rate of 6.7% and a term of 3 years. It is reported that the issue plan for the tailored debt financing tool for indemnificatory housing of Fuzhou Urban and Rural Construction and Development Corporation reported by IB has a scale totaling RMB 6.8 billion, and is expected to be issued completely in the period from 2014 to 2015. The financing tool will provide large-scale financial support for the construction of indemnificatory housing in Fuzhou in a constant and steady manner.

It is said that upon issue, the debt faced dual press brought by the rising debt interest rate since the end of last year and tightening funds upon the Spring Festival. As the only national listed bank based in Fujian, IB,assuming the responsibilities on its own initiative and taking it as an important task to serve and accelerate the economic development of the province, issued the debt at an interest rate below the current market average level, thus reducing the financing cost for the construction of indemnificatory housing. In this way, it actively performed its social responsibility to serve the public as a listed public banking institution.