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ICBC’s Financing for Government Service Procurement Gains Steam

In recent years, ICBC has continued to innovate business model by providing financing for government service procurement to support financing needs in areas of infrastructure and public services. Statistics show that as of the end of 2016, ICBC’s outstanding financing in government procurement exceeded RMB 200 billion. The business, focused on supporting shantytowns renovation, comprehensive underground pipework, sponge city construction and river improvement, has delivered strong momentum.

Different from traditional government project financing, the financing business for government service procurement helps to reduce corporate financing costs and optimize debt structure while supporting the change in government’s approach to public supply. To further enhance the service level of financing for the government to purchase services, ICBC has continued to improve credit policies based on market changes and business needs and enhance the efficiency of business response. The Bank has established a chain management system for major projects covering the whole process from marketing to delivery to ensure that responsibilities in different stages are performed and the project is implemented according to the schedule and plans.

In 2016, ICBC financed a series of major projects, including the shanty towns renovation and comprehensive land reclamation project in the Yitong River Basin of Changchun, dilapidated and old houses renovation project of lots C4-C8 at Honghua Airport in southern Nanjing as well as rural road construction project in Hefei, which strengthened ICBC’s leading position in the industry.