NDRC Says It Will “Maximise” Simplification of Enterprise Bond Procedures During Coronavirus Outbreak

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One of the Chinese central government’s top authorities has unveiled measures to facilitate the issuance of enterprise bonds in order help contain the impacts of the novel coronavirus outbreak.

The National Development and Reform Commission (NDRC) recently issued the “Notice on Effectively Performing Enterprise Bond Work During the Disease Prevention and Control Period” (关于疫情防控期间做好企业债券工作的通知).

The Notice outlines a range of measures for supporting the bond financing needs of enterprises during efforts by China to contain the spread of the novel coronavirus.

These include:

  • Supporting the raising of funds via enterprise bonds to be used for medical treatment services, scientific research, pharmaceutical production and infrastructure development in relation to disease prevention efforts.
  • Allowing funds raised via the issuance of enterprise bonds to be used for the repayment or swapping out of project loans that have arisen as a result of prior disease prevention and control work.
  • Encouraging enterprises with strong-credit to issue joint micro and small-enterprise (MSE) bonds, in order to provide liquidity support to MSE’s impacted by the spread of the novel-coronavirus.

The Notice also said that authorities would “simplify to the greatest extent the handling of enterprise bond procedures during the disease prevention and containment period,” as well as establish a “Green Pipeline” to facilitate applications and allowing off-site handling of procedures.

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