Underwriting of Financial Bond (Auto Financing Company)
Introduction Financial bonds for auto financing companies are marketable securities issued by auto financing companies in the national interbank bond market, where the principal and interest are repaid under given terms. Auto financing companies are non-banking financial institutions established under the approval of China Banking Regulatory Commission for the provision of financial services to car buyers and sellers.
Financial bonds for auto financing 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 for the provision of financial services to car buyers and sellers, have the requirement to raise funds.
Functions and Features Issuance of financial bonds for auto financing companies is a good solution to raise stable capital of mid-to-long term from wider channels. Auto financial companies can use the new capital to drive forward the business.
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 Auto financing companies are welcomed to contact ICBC directly during office hours, based on own financial requirements.
Steps 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.