IFR Asia awarded China’s Best Bond Deal of the Year to "Jianyuan 2005-1 personal housing Mortgage Backed Securities (MBS)", which was issued by China Construction Banking Corporation (CCB, stock code: 0939) in December 2005. This is another honor following the Best Domestic Bond House of 2006 awarded by Asiamoney.

CCB’s MBS project was approved as the first pilot MBS project in China at the end of 2005, which raised RMB3.016 billion in total. The selected benchmark interest rate is the 20-day average of the seven-day repo rate of the inter-bank market. The interest spread for Grade A MBS is between 0.90% - 1.10%, Grade B 1.50% -1.70% and Grade C 2.55% - 2.80%.

IFR Asia cited Jianyuan 2005-1 a model for Residential MBS. The reason that Jianyuan 2005-1 was so successful is that CCB had conducted in-depth discussions with multiple regulatory and intermediary agencies to introduce the first residential mortgage backed securities in China, which are comparable with the similar products in mature markets. IFR Asia also pointed out that MBS is an effective way to consolidate capitals and reduce bad debts. The success of the project is a breakthrough for the rating based upon cash flow and the design of a credit structure to allow the issuance of asset-backed securities (ABS). 

IFR Asia is an authoritative magazine about the capital market. It is committed to covering the bonds, stock markets, major financial trends and news. The awards issued by IFR Asia are highly recognized by the industry. The Best Bond Deal of the Year award is another recognition of the achievements made by CCB in the capital market.

Profile:

China Construction Bank Corporation (CCB) was the first bank to go public among China’s four largest state-owned commercial banks in the overseas market, providing a comprehensive range of commercial banking products and services. CCB’s principal business activities consist of corporate banking, personal banking and treasury operations. CCB is among the market leaders in China in a number of products and services such as infrastructure loans, residential mortgage loans and bank cards. CCB has an extensive customer base, with established banking relationships with many of the largest business groups and leading companies in industries which are strategically important to China’s economy. And its network covers all major regions throughout the whole country. Customers can access CCB’s services through various channels such as wealth management centers, electronic banking, and self-service banking centers. As of June 30, 2006, it had an extensive network of 13,847 branch outlets in the mainland of China. In addition, it maintained overseas branches in Hong Kong, Singapore, Frankfurt, Johannesburg and Seoul; representative offices in London and New York; wholly owned subsidiary of China Construction Bank (Asia) Limited; and joint ventures of Sino-German Bausparkasse Corporation with share of 75.1% and CCB Principal Asset Management Co., Ltd. with share of 65%.

According to The Banker magazine in July 2005, CCB was rated 11th among Top 1000 World Banks and ranked the No. 1 on the list of top 100 China’s bank in terms of the tier one capital. According to Asiaweek in July 2006, CCB was rewarded “most profitable bank in Asia”.