Dismantling 100 billion special epidemic prevention bonds: the largest policy bank

category:Finance
 Dismantling 100 billion special epidemic prevention bonds: the largest policy bank


The largest issuing scale of policy banks

The issuers of special epidemic prevention bonds of financial institutions involve banks, securities companies and leasing. Among them, two leasing companies issued a total scale of 3 billion: the issuing subject is far east leasing, part of which is used to supplement working capital, and part of which is used to meet the financial leasing needs of epidemic areas and pharmaceutical enterprises.

As of February 27, the securities companies issued eight special epidemic prevention bonds, with a total scale of 10 billion. Its characteristics are mainly marked in the full name of bonds, such as the public issuance of corporate bonds (epidemic prevention and control bonds) issued by West China Securities.

From the perspective of fund use, at least 10% of the funds raised by the above eight bonds need to be used for epidemic prevention. For example, for the bonds issued by Huaxi Securities, the raised funds are used to supplement the companys working capital, of which not less than 10% are used to support the epidemic prevention and control related businesses, including but not limited to the funds to provide equity pledge business for the epidemic area or customers damaged by the epidemic.

Banks are divided into policy banks and commercial banks for analysis. Three policy banks have issued eight special anti epidemic bonds totaling 41.5 billion, including three export import banks, 17 billion, two national development banks, 13.5 billion and three agricultural development banks, 11 billion.

The reasons for the higher scale of issuance of the three policy banks are as follows: first, unlike commercial banks, the policy banks themselves are more familiar with the bond market by issuing bonds; second, they have a higher credit rating, which is almost the same as that of the Ministry of finance, so the scale of issuance of single bonds is larger, for example, the scale of issuance of single bonds in the war 120 of the 20 countries reached 80 Billion. More importantly, the stable growth of macro-economy often requires the efforts of policy banks. Recently, many departments of the central bank have stated that they should further play the role of policy banks. According to the reporter, at present, the policy banks have participated in the steady growth by providing emergency loans for epidemic situation and special loans for making up for shortcomings.

For example, on February 25, Guizhou branch of China Development Bank, Guizhou branch of Agricultural Development Bank and Guizhou branch of Export Import Bank of China, together with Guizhou development and Reform Commission, set up a special financing fund of RMB 180 billion to make up for shortcomings and stabilize investment, which is used to support key projects of epidemic prevention and control, major projects of Guizhou Province, etc.

Under the new situation, the support scope of the three policy banks is expanding. On February 25, the State Council announced that policy banks would increase the special credit line of 350 billion yuan to private, small and medium-sized micro enterprises at preferential interest rates.

The source of this special credit line may be PSL, but it may also be bond issuance. This year, in addition to the original tasks, epidemic prevention and control and small and micro support will be added, said a policy bank credit business person in the western province. To do business now, we should not only support local development, but also increase local implicit debt. We should also focus on supporting targeted poverty alleviation and rural revitalization, which is too testing technology.

The issuance of special epidemic prevention certificates of deposit is hot

Commercial banks mainly issue special certificates of deposit for epidemic prevention.

On February 18, the market interest rate pricing self-discipline mechanism issued the regulations on the issuance of special inter-bank certificates of deposit for epidemic prevention and control, saying that in order to implement the requirements of the central banks relevant notice, financial institutions that have filed the issuance plan of 2020 inter-bank certificates of deposit can issue special inter-bank certificates of deposit for epidemic prevention and control, and the balance of inter-bank certificates of deposit, including special anti epidemic certificates of deposit, does not exceed the annual issuance limit of the institution.

The next day, China Merchants Bank, China Construction Bank and Bank of communications each issued a special deposit certificate for epidemic prevention. On February 20, the number of special certificates of deposit for epidemic prevention increased sharply to 24. Since then, the number of special certificates of deposit for epidemic prevention has remained about 10 per working day.

According to the reporter, as of February 27, commercial banks had issued 81 certificates of deposit, with a total scale of 40.9 billion. The time limit of these certificates of deposit is within one year, and the funds raised are directed to support the credit investment of enterprises related to epidemic prevention and control.

According to the chief banking analyst of a medium-sized securities firm in Shanghai, on the one hand, the hot issuance of special anti epidemic certificates of deposit is policy support. On the other hand, under the background of slowing down the growth of bank deposits and reducing the number of network customers during the epidemic, banks can reduce the pressure on the liability side by issuing inter-bank deposit receipts. The main issuers of special anti epidemic certificates of deposit are small and medium-sized banks: of the 82 anti epidemic certificates of deposit, 63 are local city commercial banks, agricultural commercial banks, agricultural credit cooperatives and private banks, accounting for 76%. After the outbreak of the epidemic, small and medium-sized enterprises are facing greater financial pressure, while small and medium-sized banks have advantages in serving small and medium-sized enterprises. The intensive issuance of special epidemic prevention deposit certificates helps small and medium-sized banks to raise funds and increase credit. The banking analysts said. It is worth noting that the issuing interest rate of the anti epidemic inter-bank deposit receipt is relatively low. For example, the nominal interest rate of 20 Bank of Shanghai (special epidemic prevention) cd049 issued by the Bank of Shanghai on February 20 is 2.45%, while the interest rate of ordinary deposit certificates issued by the Bank of Shanghai on February 25 is 2.55% - the former is 10bp lower than the latter.

At present, the interest rate of the special anti epidemic deposit receipt is low, which means that banks can get more low-cost funds, so as to better provide financial support and interest rate preference for small and micro enterprises. In general, the duration of special certificates of deposit for epidemic prevention is relatively short, mainly to cope with the short-term impact of the epidemic on the market and ease the pressure of corporate liquidity, said the analyst

Interbank certificates of deposit are generally bought by banks. Now there are certain purchase tasks, so the interest rate of special epidemic prevention certificates of deposit is very low. A person from the head offices asset and liability Department of a stock bank said frankly.

In fact, the interest rate of special epidemic prevention bonds issued by policy financial institutions and securities companies is also lower than that of ordinary financial bonds. For example, the one-year war epidemic 120 coupon rate issued by CDB on February 6 is 1.65%, while the one-year ordinary bond 20 country development 01 interest rate issued on February 13 is 2.39%. In terms of subscription multiple, the former is 11.85, while the latter is only 4.06.