Fixed Income



Established in July 2002, BOCI Fixed-income division fully covered all business fields in fixed-income including product engineering, underwriting, sales and trading, as well as researching. Its staffs mainly come from the bond departments of other large local securities companies in China and those well-known foreign investment banks, most of them are seasoned experts with versatile local and overseas fixed-income business experience. Under the globalized and integrated running model, the division, with BOCI as the lead manager, had abounding underwriting records of large-scale local and global bonds issued by the government and big enterprises and through which accumulated lots of experience. Also, whit the solid support of widespread and multi-leveled sales network as well as its tremendous client base, the division made remarkable achievements on the issuances of treasury bond, financial bond and corporate bond and bond trading. Furthermore, its researching department won very high credit in the market for its outstanding professional strength.

Fixed income provides the following services:

  1. Local and foreign currency bond underwriting in China
  2. Municipal bond and asset backed securities underwriting in China and global bond underwriting
  3. Treasury bond and financial bond auction and sales
  4. Commercial paper underwriting
  5. Proprietary Trading (both the interbank market and exchanges)
  6. Bond market researching and consulting
  7. New fixed-income product engineering and developing

 

Corporate bonds  Other kinds of bond   |   Commercial papers   |    The medium-term notes   |    The medium-term notesCDB Financial Bonds  | CADB Financial bond  |   bond Trading   |   bond research   | Equity Linked Products Department

Corporate bonds

In the past 6 years after its establishment in 2002, BOCI took the role of lead or co-lead manager of the underwriting for more than twenty corporate bonds such as Petro China bond in 2003 and 2006, Ctitic GuoAn bond and ZheJiang Traffic bond in 2004, China Resources bond in 2005, 2006 and 2008, the Ministry of Railway bond in 2005, 2006, 2007 for the first tranche and 2008, COSL bond, Sinopec Natural Gas Transportation from SiChuan to the East bond, TianJin Municipal Infrastructure Investment bond, COFCO bond, CGNPC bond and HuNan SNTO bond in 2007, AnHui Huamao bond , XiAn Infrastructure Investment bond in 2008 and Shanghai Municipal Infrastructure Investment bond in 2008, and so on. In addition, BOCI very successfully performed as the book-runner in the second tranche issuance of the Ministry of Railway bond and the performance greatly enlarged the influencing power and enhanced the leading position of BOCI in the bond market.

sequence number

time

Number of underwriting

underwriting volume

Market share(%)

1

2002

3

2.85

0.88

2

2003

8

18.5

5.16

3

2004

7

22.75

7.07

4

2005

14

37.8

6.87

5

2006

24

124.72

12.29

6

2007

35

189.90

10.78

8

2008-5

3

27.92

7.73

title

 

94

424.44

 


Other kinds of bond

In 2004 and 2005, as the lead manager, BOCI undertook the first and second tranche of the subordinated bond issued by the Bank of China, as well as the first tranche’s re-open. In 2005, BOCI acted as the book-runner in the issuance of 15 billion RMB bond by the China Industrial Bank. Meanwhile, BOCI also participated in the subordinated bond issuances of the China Construction Bank and the Industrial and Commercial Bank of China, as well as the China Merchants Bank’s financial bond offering. Furthermore, being the sole-lead and book-runner, BOCI successfully managed the 1 billion Panda bond issuance for ADB in China. Also in 2005, together with the fixed-income division of its holding company,BOCI successfully underwrote 500 million USD bond issuance of the China Merchants Holding (International) Ltd. and the 1 billion USD bond global issuance of the Exim Bank of China.


Commercial papers

Since obtained the Innovative Securities Firm qualification in July 2006, BOCI actively took part in the commercial paper underwriting market and the underwriting amount has been up to 13.38 billion RMB.


The medium-term notes

Up to May 2008, BOCI had participated in about 11 medium-term notes offerings, including 2008 China Minmetals MTN1 、2008 China Communication Construction Co. MTN1、2008 China Telecom MIN1、2008 COFCO MIN1、2008 China Nuclear MIN1、2008 Ministry of Railways MTN1、MTN2 and so on. The underwriting amount is 2.68 billion RMB or 3.64% of the market share.


Treasury bonds

At the beginning of 2003, BOCI joined the treasury bond underwriting syndicate for the exchanges market and then, in 2004, got the A-level membership on which BOCI can actively participate in the treasury bond issuance for the Ministry of Finance.

From 2003 to 2007, BOCI kept straight first and second position in terms of the underwriting volume among all securities firm members in the syndicate and won the honor of “the Biggest Bidder” for many times with the highest underwriting volume in No.7 tranche in 2003, No.7 tranche in 2004, No.4, No.12 and No.13 tranche in 2005, No.3 tranche in 2006, that presents its very strong underwriting capacity in treasury bond issuances.


China Development Bank (CDB) Financial Bonds

Since joined the CDB financial bond underwriting syndicate in 2004, BOCI actively involved in the bond’s underwriting and the volume has amounted to 97.19 billion RMB which dominated the leading position among all securities firms in the syndicate. Also, BOCI won “the Biggest Bidder” in No.24 tranche and No.26 tranche in 2005


China Agricultural Development Bank (CADB) Financial bond

BOCI joined the financial bond underwriting syndicate of CADB in May 2005, and the underwriting volume had amounted to19.85 billion RMB by the end of May 2008. BOCI is no doubt among the tier 1 class among all securities firm syndicate members.

China Import and Export Bank (EXIM Bank) financial bond

BOCI became the EXIM Bank’s bond syndicate member in May 2005, and by the end ofMay 2008, its underwriting volume had added up to 10.04 billion RMB, ranking first among all securities members.


bond Trading

Since been listed in the National Interbank Bond Trading System in June 2003, BOCI made a series of compelling achievements:

1、Being awarded the designation of Excellent First Tier Trader in the electronic platform of fixed income products, an honor offered by the Shanghai Stock Exchange In 2007.
2、Obtained the qualification of Attempting Buy & Sell Dealer in the Interbank market at the beginning of 2007
3、Being one of the first three securities firms that qualified by the China Securities Regulatory Commission to operate the interest rate swap business by the end of 2007.
4、Designated as the First Tier Trader in the open market operations of the People’s Bank Of China since 2005.
5、Being awarded as the Outstanding Trader in the Interbank Market from 2004 to 2007.


bond research

Bond researching team provides our institutional clients with independent fixed-income investment advices and other research services. The researching report mainly covers the fixed-income investment strategies, bond issuance pricing as well as the day-by-day bond market comment. In addition, the team also publishes special subject reports on non-periodical basis.


Equity Linked Products Department

Introduction

Established in Jan 2005, Equity Linked Products Department (ELP) aims to provide international standard services in tailoring solution of equity derivatives and structured products to both issuers and investors clients. ELP focuses on growth requirement of new business and product innovation of the BOCI. ELP is a department of the Sales and Trading District as Fix income, Institutional Sales and Research Department.