International Cooperation

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International Cooperation

As a leading development finance institution, CDB made “strategic deployments” to expand its international businesses, guiding and supporting Chinese companies to scale up investment and cooperation overseas. Such deployments stimulated open economic development in China and increased bilateral and multilateral economic and trade cooperation between China and developing and developed countries, as well as boosting economic and social development in the partner countries.

As of the end of 2015, CDB had set up business presence in 115 countries and regions worldwide. Outstanding international business loans reached US$ 286.7 billion, accounting for roughly 1/4 of all outstanding RMB and foreign currency loans issued by the bank. Outstanding foreign currency loans stood at US$ 276 billion, and outstanding cross-border RMB loans at RMB 69 billion. The balance of foreign currency loans grew from US$ 16.2 billion in 2005 to US$ 276 billion at the end of 2015, marking a nearly 17-fold increase. In 2009, CDB outranked all other Chinese banks with outstanding loans totaling US$ 97.9 billion, and has remained the largest lender in China during the past six years. It is also the largest foreign investment and financing cooperation bank and has the most extensive development finance assets in the world.

At present, CDB has an overseas business network consisting of one branch (Hong Kong), five representative offices and over 50 mission groups.

Business model:

Corporate financing. Financial services are provided for corporate clients covering routine business operations, individual project development and construction, mergers and acquisitions, etc. by offering financial products such as loans, investment, bond issuance, leasing and IPO.

Project financing. It is a financing model where specific projects are identified as the objects of financing, with future project earnings pledged as the source of loan repayment and relevant assets and usufruct rights serving as collaterals. In the case of project financing, the lender has the right of recourse.

Cooperation with governments. A major government department of the partner country or a financial institution (or platform) designated thereby is identified as the financing entity. Investment and financing services are provided following commercial principles to support the construction and implementation of key projects in the partner country, with the aim of enhancing the standard of economic and social development and organic growth in the country.

Financial cooperation. Financial production cooperation such as credit lending, syndicated loans and joint loans are conducted with regional and sub-regional financial institutions or the central bank, development finance institution, leading commercial banks in the partner country, or well-known global financial institutions.

Products:

Loan business. Medium/long-term loans lasting longer than one year, and working capital loans or short-term foreign currency loans for construction projects that last less than one (inclusive) year. Relevant products mainly include corporate financing, project financing, M&A financing, export credit, foreign currency lending, trade financing and special products such as cross-border RMB loans.

Investment business. General equity investment products and mezzanine structured investment products are provided for overseas projects through multilateral investment platforms under CDB, e.g. CDB Capital, China-Africa Development Fund, Development Fund between China and Portuguese-speaking countries and Pakistan-China Joint Investment Corporation (PCJIC).

Intermediate business. It includes financial advisory, international settlement, bond underwriting, RMB bond investment and trading, leasing, guarantee and bills.