Agricultural Bank of China Steps up Provision of Investment Banking Services

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One of China’s original big four state-owned banks is stepping up its provision of investment banking services to the corporate sector at the behest of Beijing.

State-owned media reports that Agricultural Bank of China (ABC) further expanded financial services for companies that are listed or plan to list in the first half of 2022.

This included providing merger and takeover financing, syndicated bank loans, bond underwriting, asset securitisation and IPO advisory services to more than 110 companies in China, for a total financing amount of over 80 billion yuan in the first half.

In the first half ABC provided 21 listed companies with merger loans, in order to drive asset restructuring and stabilise operations, with an especial focus on bridge and freeway infrastructure projects.

ABC also underwrote 64 debt issues by 47 listed companies in the first half, raising more than 65 billion yuan in funds. According to ABC funds raised by the issues will be used mainly for green low carbon projects, environmental protection, rural village revival and industry transformation.

ABC said that the next step will be to engage in “targeted seizure of reform and development opportunities on the capital market,” and “further raise the quality and efficiency of comprehensive financial services provided to listed companies,” as part of broader efforts by the State Council and the Chinese Communist Party to stabilise the economy.