In 2010, ICBC underwrote 86 debt instruments (short-term bonds, mid-term notes and ultra short-term bonds) totaling nearly RMB 210 billion, according to the latest data compiled by ChinaBond.com.cn and Bloomberg. ICBC topped the domestic league table by substantial margin and for the fourth year running proven itself as the No.1 bond underwriter nationwide. 

ICBC is one of the earliest financial institutions in the country to be qualified in underwriting yuan debt, said an executive with ICBC. In underwriting bonds, ICBC remains as the largest financial institutions in the country in terms of size, category and underwriting strength. The Bank has underwritten more than RMB 770 billion debt instruments since 2007, maintaining the strong momentum during this 4-year period. ICBC has been named outstanding underwriter and outstanding dealer by Ministry of Finance and People's Bank of China on different occasions.

Industry insiders commented on the robust growth of ICBC in underwriting bond in the increasing competitive market. Major factor is the solid strength of ICBC's underwriting business besides the healthy growth of China's bond market and direct financing. At present, ICBC has established formalized management procedures and business processing process in the underwriting and issuance of bonds. A mechanism has been in place across all branches to support the operation of the business in a closely-connected fashion, flexible, professional and highly efficient. ICBC also set up a team to offer comprehensive services in direct debt financing for corporate clients. Members of the team are experienced staff in customer marketing, due diligence, pricing sales, investment deals and follow-up services. Meanwhile, ICBC spent continuous effort to improve its distribution mechanism, underwriting network and pricing capability in order to ensure successful offering and maximum benefits for customers.

Strong product innovation ability is also another significant driver of ICBC's bond underwriting and issuance business. The Bank last year expanded the scope of this business by underwriting the first collective notes for small-and-medium enterprises, the first financial bonds for financial leasing firms and the first ultra short-term bonds. ICBC was appointed as the lead underwriter for the first three tranches of ultra short-term bonds since the launch of this new product on December 21, 2010, and being the lead underwriter to conclude successfully the issuance of all the two ultra short-term bonds. 

ICBC executive said, all parties reach consensus to tap bond market for direct funding as further reform in China's financial system. Against this backdrop, a strong bond underwriting business in commercial banks is not only a key driver to today's economic and financial development, but has been critically affirmed as an alternative source of finance in companies and financial institutions, a way of reducing financial risks of the banking sector and an impetus of business transformation in commercial banks. In this new year, ICBC will continue to put up more resources to the business and scale up the services. The Bank strives to cater to the needs of both borrowers and investors in the financial market by delivering more innovative direct financing products and improved services.