OREANDA-NEWS. August 08, 2013. In recent years, ICBC supports economic restructuring, industrial transformation and upgrade by expanding investment banking services, leveraging the advantage as a commercial bank group.

The Bank provides corporate clients with a wide spectrum of finance services and best investment products according to the changes in market and customer needs. Data show that, since 2013, ICBC has provided advisory services for 50 equity finance projects, amounting to over RMB 17 billion. In the delivery of M&A services, during the first six months of 2013 ICBC participated in 370+ M&A projects involving a total of more than RMB 115 billion. Further, ICBC provided financial advisory services for 1,200+ projects involving structured finance, financial restructuring, debt investment and asset securitization.

Investment banking is a key business segment for ICBC's transformation and serving real economy, said an ICBC executive. The product portfolio of ICBC investment banking has been constantly modified over the past few years. Customers benefit from the synergy of the value-added services and ICBC's professional skill in investment banking. ICBC investment banking has played a major role in supporting emerging strategic industries, driving technological innovation and helping companies "go global" besides making good progress in terms of scale and quality.

In M&A and restructuring, among the commercial banks in China ICBC is the earliest to set up a special service team, offering a full range of comprehensive M&A services to companies covering "investment banking + commercial banking, advisory + finance, domestic + overseas, home currency + foreign currency". As a commercial bank, ICBC also provides special services such as M&A deal matching, deal structure and design, valuation and suggestion, project execution and finance arrangement. These services have helped companies "go global" besides contributing to industrial restructuring. In promoting industrial restructuring, ICBC supports companies to loom large and phase out outdated production by serving mergers and acquisitions in many sectors: car manufacturing, iron and steel, cement, shipping, electrolyte aluminum, rare earth minerals, IT, medicine and agriculture.

Up to end of June, ICBC's domestic outstanding M&A loans surpassed RMB 45 billion. In supporting companies "go global", ICBC provided loans totaling USD 15.8 billion to 79 "go global" projects as of end of June this year, and offered advisory services for nearly a hundred companies to acquire overseas companies. ICBC involves in numerous key cross-border M&A projects at home and abroad of high technological demand and strong market influence. ICBC supports overseas expansion of Chinese companies and strategic upgrade of traditional industries. Examples: ICBC offered investment banking services (M&A advisory, M&A loan) for world's largest lithium-extraction company to acquire the world's largest solid lithium mine and for a Chinese company to acquire Germany's Thyssenkrupp Tailored Blanks. Further, ICBC also uses its international influence and professional investment banking services to support bilateral investments. China-Thailand Forum, China-Netherlands Summit, "Chinese Companies 'Go Global' Summit Forum (Europe)" were events organized for hundreds of companies to look for projects or investment opportunities.

In equity finance, ICBC acts as the administrating bank for private placement and provides a range of services to corporate clients such as project referral, fund raising, management after investment. Together with these companies, ICBC offers services for corporate clients to raise capital covering investment by strategic investors, Pre-IPO, public offering, back-door listing, asset injection, mezzanine finance, private placement and cross-border M&A. ICBC was the administrating bank for the additional A-share placement by Shijiazhuang Baoshi Electronic Glass Co. Ltd. for its flat panel display glass substrate production line project. This is the first time that ICBC acting as administrating bank to raise capital for a strategic emerging industry.
In financial advisory, ICBC looks for low-cost alternatives in order to provide more diverse solutions for customers to raise capital. Another focus is to expand the financial advisory services and products by seeking opportunities to offer advisory services in corporate debt restructuring, financial restructuring, asset securitization and green investment outside China. "Exclusive Debt Investment Advisory", an innovative product launched recently, is a new alternative to mitigate risks when extending corporate loans, a win-win situation for all parties involving ICBC, borrowers and investors.