I. Introduction:
Financial bonds for finance companies are marketable securities issued by finance companies (established in China under law) in the national interbank bond market, where the principal and interest are repaid under given terms.

II. Target Clients:
Finance companies with good performance, need to raise funds in the mid-to-long term and meet the following conditions:
1. Good corporatea governance mechanism
2. Capital adequacy ratio of at least 10%
3. Risk Control Indicators comply with the regulatory rules
4. No material default and violation in latest three years  
5. Guaranteed by its mother company or other member companies that can offer guarantee, unless expressly exempted by China Banking Regulatory Commission
6. Over 1 year in business, good performance, profitability ratio at least on par with the average industry standard 1 year before the application, and stable profit in the forseeable future
7. 1 year before the application, the bad asset rate under the average industry standard, sufficient allowance for impairment losses on asset
8. 1 year before the application, at least RMB 0.3 billion of the registered capital, the net asset at least on par with the average industry standard
9. No due debit unpaid

III. Features and Advantages:
Issuance of financial bonds for finance companies is a good solution to raise stable capital of mid-to-long term. The new capital can be used for increasing the proportion of core liability to ameliorate liquidity risk or interest rate risk as one way to reduce capital cost and achieve better business performance.

During the second half of 2007, ICBC was among the first batch to be the lead underwriter in the issuance of financial bonds for finance companies. ICBC has underwritten RMB 1 billion and RMB 1.3 billion of financial bonds for Shanghai Electric Group Finance Company and WISCO Finance Company respectively. In 2009, ICBC underwrote RMB 6 billion and RMB 3 billion of financial bonds for Sinopec Finance Co., Limited and China Power Finance Company (CPFC) respectively. 

IV. Service Channels and Hours:
If necessary, corporate clients are welcomed to contact the Underwriting Section of ICBC Global Market Department for details. Our staff will guide through the necessary steps. 

Contact: Wang Hua, Yang Fan
Tel: 010-66107769、66107442

V. Statement:
Information herein is for reference only. Industrial and Commercial Bank of China Limited reserves the final right of interpretation. Refer to the announcements and regulations of local branches for further details.