All tranches target at institutional investors. Bookbuilding will mainly cover tranches with tenor of 10 years or longer which are expected to be open for subscription in the middle of January 2012. Barclays Bank PLC, Citigroup Global Markets Limited, The Hongkong and Shanghai Banking Corporation Limited, Deutsche Bank AG, Hong Kong Branch, Standard Chartered Bank (Hong Kong) Limited and The Royal Bank of Scotland plc are the Joint Lead Managers and Joint Bookrunners for the bookbuilding part. A CMU bidding process will be applied to 3-year and 5-year tranches; the tender process is expected to be completed on 13 January 2012 with the result to be announced on the same day. Bank of China (Hong Kong) Limited will act as the issuing and lodging agent.
As the only full-functioned bond house that has obtained full license for bond issuing and underwriting, market-making, securitization etc., according to Mr. Gao Jian, Executive Vice President of CDB, the bank is the largest onshore financial bond issuer. The proposed offering aims at extending the bank's competitive advantages in onshore Renminbi business to the offshore market, further establishing a comprehensive yield curve and setting up a pricing benchmark. For the first time, CDB will be using the proceeds offshore to support its overseas Renminbi business. CDB will fully utilize Hong Kong as an offshore Reminbi centre to promote the further development of the offshore Reminbi market.
China Development Bank Corporation
China Development Bank was established in 1994 as a government policy-oriented financial institution in Mainland China. At the end of 2008, it was reformed into China Development Bank Corporation. After its reform, CDB continues to be wholly owned by the the PRC government, through the Ministry of Finance, Central Huijin and National Council for Social Security Fund. As a bond bank and wholesale bank with expertise in medium- and long-term investment and financing, it continues to be engaged in serving national strategy of fostering infrastructure, promoting grass roots financing and international cooperation. The total assets of CDB to date is beyond RMB6 trillion, and NPL ratio has been below 1% for the past consecutive 6 years. In recent years, CDB has actively expanded its business involving international cooperation and has played a leading role in China's investment and financing activities offshore, with over US$200 billion foreign currency denominated loans, leading its industrial peers. According to the regulatory authority, CDB's onshore RMB bonds are exempted from rating. The credit ratings of CDB's foreign debt assigned by Standard & Poor's Ratings Group, Moody's Investors Service, Inc. and Fitch Ratings Inc. are AA-, Aa3 and A+, respectively, all of which are the same as China's sovereign credit rating.
Disclaimer and Important Notice:
This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or elsewhere. The securities referred to herein will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state of the United States or any other jurisdiction. The securities will only be offered and sold outside the United States in reliance on Regulation S under the Securities Act and may not be offered and sold within the United States absent registration or an exemption from registration under the Securities Act. No public offering of the securities will be made in the United States, or to any U.S. persons (as defined in Regulation S under the Securities Act) or in any other jurisdiction where such an offering is restricted or prohibited. No money, securities or other consideration is being solicited by this press release or the information contained herein and, if sent in response to this press release or the information contained herein, will not be accepted.
SOURCE China Development Bank Corporation
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