国家开发银行 china development bank 1 overview of china development bank march 30, 2010

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国家开发银行 China Development Bank 国家开发银行 Chin

a Development Bank

Overview of China Development Bank

March 30, 2010

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a Development Bank

1. Brief introduction of China Development Bank

CDB was established in 1994, under the direct leadership of the State Council of

China.

On December 11th 2008, CDB was transformed into a joint stock corporation, Mi

nistry of Finance and Central Hujin Investment Limited are two main shareholde

rs representing the State. CDB is in the reforming process of being a first-class int

ernational financial institution and building itself to be a commercial bank.

The purpose of reforming is to provide stronger support for the social economy.

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a Development Bank


Institution: Headquartered in Beijing, with 35 branches in China and 2

representative offices, including one branch in Hong Kong, and one representative

office in Cairo (Egypt). And we are now preparing to establish representative

offices in Moscow (Russia), Rio de Janeiro (Brazil), Caracas (Venezuela).

Characters:

• Focusing on medium and long term credit.

• Positioned as the largest bank in China for overseas financing.

• Funding mainly comes from bond issuance (no retailing saving business).

• Enjoys sovereign level credit rating

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a Development Bank


Task: raise and guide social funds, support the development of infrastructures,

basic industries, backbone industries and high-new technologies as well as China’s

key project construction. And CDB also go to sectors related to people’s livelihood

including the construction of new rural areas, urbanization, medium and small

enterprises, housing for low income families, energy saving and environmental

protection, medical healthcare and micro loans, student loans.

In addition, CDB has been actively carrying out international cooperation business.

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a Development Bank


As of the end of the 2009

Total assets:

total assets stood at RMB 4.5 trillion (equal to USD 660 billion)

loan balance stood at RMB 3.68 trillion (equal to USD 540 billion)

Performance:

Total profits was RMB 30.2 billion for 2009; Non-Performing Loan ratio stood at

0.9%; Capital Adequacy ratio was 11.7%.

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a Development Bank

2. Development track

2.1 Two periods of CDB development

First period (from its establishment in 1994 to 1998):

Given the fund shortage and the requirement of China’s key project construction, t

he Bank provides loans for infrastructures, basic industries and backbone industries

as well as its supporting projects in the form of policy finance to solve the barriers.

Second period (from 1998 to present):

The Bank conducted marketization reform, and to serve the economic and social d

evelopment in the marketized approach;

The Bank’s market performance has reached international advanced level.

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a Development Bank

Steady growth of total assets (Unit：RMB 1 billion)

1040.1

2894.7

3722.7

4496.7

1897.92314.3

1574.51279.2

889.9

0

1000

2000

3000

4000

2001 2002 2003 2004 2005 2006 2007 2008 2009

2.2 CDB performance reached international advanced level

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a Development Bank

Net profits (Unit：RMB 1 billion)

22.8 20.8

30.228.827.7

17.4

05

101520253035

2004 2005 2006 2007 2008 2009


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a Development Bank

Non-performing asset ratio less than 1%in 19 consecutive quarters

8.78%

0.96% 0.75% 0.95% 0.90%

18.66%

4.25%

2.54%

1.31%1.88%

0.64%

0%

3%

6%

9%

12%

15%

18%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


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a Development Bank

three international credit rating companies- Moody, Standard & Poors, and Fitch, continued

to grant CDB the sovereign level credit rating.

A1(stable)


A+(stable)

A+(stable)

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a Development Bank


Loans are mainly directed to infrastructure and basic industries

El ect r i ci ty, 16%

Publ i cFaci l i t i es,

30%

Others, 22%

Road, 20%

Rai l way, 3%

Pet ro-chemi cal ,

4%

Tel ecommunicat i ons, 2%

Coalmi ni ng, 1%Agri cul ture

& rel atedi ndust ry,

2%

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a Development Bank

2.3 CDB plays a vital role in promoting economic and social development

Infrastructures, basic industries

and backbone industries

Education, medium and small enterprises, energy

saving and environmental protection, etc.

International cooperation

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a Development Bank

3.1 CDB actively carried out international cooperation

During the recent wave of globalization, CDB seized the opportunity to further en

hance our role and reputation on the global stage. CDB has established good relat

ionship with more than 100 foreign financial institutions and has established abo

ut 150 working teams overseas.

As of the end of 2009, CDB’s balance of foreign currency loans reached

USD 97.4 billion and the non-performing foreign currency loan ratio being 0 for

29 consecutive quarters.

President of China introduced CDB as ‘the largest bank in China for overseas fin

ancing’ to President of Peru in 2008.

3. International Cooperation Business

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a Development Bank

Foreign exchange loan balance (Unit：USD 1 billion)

16.1859.812

28.685 30.493

97.4

64.469

0102030405060708090

100

2004 2005 2006 2007 2008 2009

3. International Cooperation Business

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a Development Bank

Financing models

Other methods

3.2 Modes of International Cooperation Business

Financial cooperation (credit to foreign banks, currency swap, onlend);

Syndicated loans;

Loans to foreign companies;

Loans to Chinese companies (overseas investment, mergers and acquisitions);

Export Buyer’s/Seller’s credit;

Direct investment;

Leasing loans (aircraft, shipping, large scale equipment);

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a Development Bank

4. Main experiences

CDB maintained marketized operation to meet the state and social development

objectives;

CDB intensified financial innovation and combined the leading international

financial philosophy and methodology with China’s reality to improve market

operations;

CDB broke through financing bottleneck via market construction in an effort to

build a health and efficient market and financing system;

CDB promoted scientific development with careful planning;

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a Development Bank

5. Future Development of China Development Bank

The Bank will take advantage of the reform to stride forward toward b

uilding a world-class modern financial institution and better serve the

economic and social development in accordance with the requirement

of building the modern financial enterprise system.

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6. About the Syria Working Team of CDB

Established in October, 2008. At present there are two members.

In answer to the call of the State to encourage domestic enterprises to “Go

Global”, CDB engages in a wide range of international cooperative activities.

As the largest developing country in the world, China has the will and

responsibility to share the story of its success with other developing countries.

Our Mission:

• Enhance economy and trade relations, and promote the friendly relationship between

Syria and China.

• Supply financial services to Syria side in every possible sector based on principles of

equality, mutual benefit and market-oriented approach, which lead to a win-win system.

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a Development Bank

6. About the Syria Working Team of CDB

Contact Information:

• ZHANG Dawei,

mobile: 00963-0988674513(Syria) email:[email protected]

0086-13995101282(China)

• LI Jin

mobile: 00963-988797190(Syria) email: [email protected]

+86-13895693720(China)

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a Development Bank

Thank you!

国家开发银行 china development bank 1 overview of china development bank march 30, 2010

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