China Development Bank Corporation (CDB) is a wholesale lender specializing in providing medium- to long-term financing facilities. Founded in 1994, CDB has been China’s leading financier for its development of infrastructures, basic and key industries.
With 37 branches across the country, one offshore branch in Hong Kong, and representative offices in Cairo and Moscow, CDB currently employs a staff of more than 7,000 worldwide
Created to be an indispensible catalyst to China’s socio-economic development strategies, CDB has maintained its primary business focus on development of infrastructure, basic and key industries. It has financed a whole host of priority mega-projects, including the Three Gorges Dam, the Beijing-Kowloon railway, the cross-country water diversion and natural gas transmission projects, the National Petroleum Reserve Program, the Beijing Olympic Games Venues, the Shanghai World Expo, and the Beijing-Shanghai high-speed rail, to name just a few. Its business reach is not limited to the more developed metropolitan areas. CDB fuels the country’s rapid urbanization process by providing for the infrastructures beyond China’s mega cities.
In recent years, CDB has diversified into two new areas: grassroots finance, and international business.
Inclusive Financing Access
CDB effectively reduces financing resource and supply bottlenecks afflicting the disadvantaged individuals, businesses and like, by channeling funds via wholesale or “group” offerings.
Such inclusive solutions are designed for rural development, small businesses, low-income housing, student loans, energy efficiency, public health, and etc. In 2010, CDB had a larger portfolio in low-income housing and student loans than any of its Chinese peers.
Top Financier for Cross-border Deals
As of end of Q2 2011, CDB maintained its position as the country’s leading foreign-currency lender, with USD 169.8 billion outstanding on its book.
CDB has financed a number of high-profile cross-border collaborations by providing commercial lending facilities, including China-Russia petroleum project, China-Brazil petroleum project and China-Venezuela Co-financing Fund. It also has helped pay for the overseas expansion of China’s most successful companies, such as PetroChina, Sinopec, China Minmetals, Huawei and ZTE.
CDB is instrumental to initiating inter-bank association establishments, under the frameworks of SCO (Shanghai Cooperation Organization), China-ASEAN Dialogue, and the BRICS.
Not unrecognized by its own financial sector, in 2010, CDB was named “Bank of the Year: International Cooperation” by the Financial News. In the same year, the Institute of Finance and Banking of the Chinese Academy of Social Sciences also gave the top honor to CDB for its accomplishment in brokering international deals.
As of end of Q2 2011, total assets of CDB exceeded USD 900 billion while its NPL ratio at 0.5%, a ratio well below 1% for 25 quarters in a row.
CDB is China’s second largest bond issuer after the Ministry of Finance.
Moody’s, Standard & Poor’s, Fitch and other professional credit rating agencies all place CDB’s ratings at the same level as China’s sovereign ratings.
Responsible Corporate Citizen
Of all the state-owned banks in China, CDB is the first to join the United Nations Global Compact. CSR (Corporate Social Responsibilities) is an integral part of CDB’s business strategies, day-to-day operations and well ingrained in its corporate culture. CDB has been actively involved in poverty reduction, disaster relief and other charitable causes.
CDB was awarded “Responsible Business for the People” by www.people.com.cn for five consecutive years (2006-2011), and the “Socially Responsible Bank of the Year” by the Financial News and the Institute of Finance and Banking of the Chinese Academy of Social Sciences in 2008.