People's Bank of China, Ministry of Finance, National Development and Reform Commission and China Securities Regulatory Commission, Tentative Measures for the Administration of Issuance of Renminbi Bonds by International Development Organisations (Revised)
中国人民银行、财政部、国家发展和改革委员会、中国证券监督管理委员会国际开发机构人民币债券发行管理暂行办法
December 14, 2010 | BY
clpstaff &clp articles &Revised Measures allow outward remittance of Rmb bond proceeds.
Promulgated: September 16 2010
Effective: as of date of promulgation
Interpreting authorities: People's Bank of China (PBOC) in conjunction with Ministry of Finance, National Development and Reform Commission and China Securities Regulatory Commission
Applicability: The term “international development organisations” refers to multilateral, bilateral and regional international development financial institutions that engage in lending and investment for development (Article 2).
Main contents: The PBOC shall control the interest rates for the issuance of renminbi (Rmb) bonds (Article 6). International development organisations that apply to issue Rmb bonds in China shall fulfil the following criteria:
(1) has a sound financial status with good creditworthiness and has been rated by at least two credit rating agencies of which at least one is registered within China and has the capabilities for rating Rmb bonds, and the Rmb bonds are rated Grade AA (or its equivalent) or above;
(2) has already provided financing and share capital of US$1 billion or more for projects and enterprises in China, except where such requirement has been exempted by the State Council; and
(3) the funds raised shall be used in priority to provide medium- and long-term fixed asset financing or provide share capital for construction projects in China; investment projects shall comply with the state industrial policy, policy on the use of foreign investment and the provisions on the administration of fixed asset investment. Sovereign debts shall fall under the relevant plans for foreign financing (Article 9).
Where the issuer directly remits the Rmb funds raised from the bond issuance for use overseas, it shall comply with the relevant PBOC provisions. Subject to approval of the State Administration of Foreign Exchange (SAFE), international development organisations may purchase foreign exchange using the funds raised from the Rmb bond issuance and remit the same overseas for use. The issuer shall explain to Safe the true purpose of the use of the funds remitted overseas, and regularly file a record of the overseas use of the funds with Safe (Article 17). The issuer shall, at the end of each quarter, submit the details of grant and recovery of Rmb loans and investments using the funds raised from the Rmb bond issuance to the Rmb bond issuance review department (Article 20). In the case of a breach of contract or other disputes relating to the issuance of Rmb bonds by an international development organisation in China, such disputes shall be governed by Chinese law (Article 22).
Related legislation: PRC People's Bank of China Law (Revised), Dec 27 2003; and PRC Securities Law (Amended), Oct 27 2005, CLP 2006 No.1 p.31
clp reference:3700/10.09.16promulgated:2010-09-16effective:2010-09-16This premium content is reserved for
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