CDB Has Issued Market-based Bonds Worth 20 Trillion RMB Since Establishment

A bond worth 24 billion RMB was fully subscribed on June 18, 2020, meaning that so far, CDB has issued market-based bonds worth 20 trillion RMB since its establishment in 1994. This marked the latest milestone in CDB’s course of raising funds on a market-oriented basis to serve national strategies.

CDB is the country’s largest bank in terms of bond issuance, and issued its first market-based financial bonds, worth 5 billion RMB, in September 1998 in the format of a public bid opening, making it the first policy bank to issue market-oriented bonds in China. Over the past 22 years, CDB evolved to become the second-largest bond issuer in China. In cooperation with depositories including China Central Depository & Clearing Co., Ltd., CDB has issued 20.0044 trillion RMB worth of financial bonds in total, and its outstanding financial bonds currently stand at 9.8009 trillion RMB, accounting for 9.2 percent of the country’s total. CDB has played an active part in guiding social forces to support the country’s areas of priority and weakness in economic and social development, by efficiently transforming small-amount, fragmented, and short-term funds into large-amount, medium and long-term funds both at home and abroad.

Over the past 22 years, with strong support from competent authorities including PBOC, CDB has adhered to an innovation-driven mindset and consistently contributed to building a high-quality bond market in China. From product innovations such as issuing benchmark bonds, bonds with embedded options, floating rate bonds, over-the-counter bonds, green bonds, and special bonds themed around “fighting the COVID-19 epidemic” and “poverty alleviation” to mechanism innovations such as rolling issuance, when-issued trading, switch auctions, flexible bidding, and market-making support, CDB has made numerous “firsts” in the bond market, and has become one of the most active issuers within the country, achieving bond issuance with omni-channel models such as the “Interbank + Exchange + Over-the-counter” model, the “Wholesale + Retail” model, and the “Domestic + Overseas” model. CDB is widely acknowledged by investors at home and abroad for its services to China’s bond market and its role in bridging the gap with its international counterparts.

According to CDB’s Treasury & Financial Markets Department, looking ahead, CDB will further the role of development finance in leading innovation, deepen the reform and opening-up of the bond market, and serve the real economy with its top-notch financing services, aiding in the final battle against poverty and the achievement of the national goal of building a moderately prosperous society in all respects.