Industrial Bank and Xiamen Airlines Reach Comprehensive Strategic Cooperation

On February 14, Industrial Bank Co., Ltd (hereinafter referred to as IB) and Xiamen Airlines (hereinafter referred to as Xiamen Air) jointly signed a strategic cooperation agreement and opened a comprehensive strategic cooperation.

Chairman of IB Gao Jianpiing, Chairman of Xiamen Air Che Shanglun attended the signing ceremony. Director of Industrial Bank Tao Yiping and the General Manager of Xiamen Air respectively signed the cooperation agreement on behalf of each party.

According to the agreement, IB will provide 30 billion yuan credit to Xiamen Air and its subordinate companies to fully leverage the integrated operation advantages of the group and provide comprehensive financial service solutions including credit, cross-boarder settlement, investment financing, financial consulting service and industrial research advisory. IB gives full support to make Xiamen Air be “unique, preferred and Asia-Pacific first class” airline industry group.

As two state-owned holding enterprises born in 80s of the last century, IB and Xiamen Air have taken advantages of their professional service, steady development and customer satisfaction to become the blue-chip brands in their own industry. With an overall assets of over 5.8 trillion yuan, IB was listed 195 among Fortune 500 enterprises and ranked among the world’s top 50 banks. With nearly 300 airlines, covering throughout the nation and the world, the Xiamen Air has an annual passenger capacity of over 23 million person-time. By the end of September 2016, the total company assets reach nearly 40 billion yuan, realizing a sales revenue of 16.5 billion yuan and remaining a continuous profit0making record for 30 years.

With good strategic cooperation base, the two parties have cooperated on areas such as traditional credit service, bond underwriting, credit card, band and enterprise direct connection, ticket business collection, and the relations between two parties are getting closer ever since the establishment of cooperation in 2001.

During this time, IB and Xiamen Air launched “IB & Xiamen Airlines Egret co-branded platinum credit card”. Based on the airline service resources and the brand advantages of IB credit card, the product stood out among others with its special airline business trip privilege and financial value-added service; in April 2016, IB participated in the issuance of short-term financing bonds of 10 billion yuan as the main underwriting bank. This is Xiamen Air’s first debut in the domestic capital market ever since its establishment. Faced with unfavorable conditions such as the increasing credit risk events of state-owned enterprises in the bond market and capital being rather tight, by making most of its professional underwriting capacity, the bonds of Xiamen Air were welcomed by the market capital and the issuance price was lower than 30% of Bank benchmark rate of loans, which saved an interest of 11 million yuan for Xiamen Air in the duration of bonds.

The two parties expressed that they will take this strategic cooperation agreement as a new start and will make most of their complementary advantages to realize common development around the “going out” strategy. As one of the commercial bank groups with most complete financial license, IB will further provide professional comprehensive financial service with good quality, and strengthen comprehensive cooperation in areas such as deposit and loan, payment and settlement, bond underwriting, turning assets into securities, merger and financing, supply chain financing, airplane rental and retail industry to realize mutual benefits.