Industrial Bank Involves in Establishing Beijing-Tianjin-Hebei Intercity Railway Development Fund with A Contribution of 3.5 Billion

On April 18, Industrial Bank Trust, a subsidiary of Industrial Bank (IB), together with IB Beijing Branch, signed an agreement with Beijing-Tianjin-Hebei Intercity Railway Investment Co., Ltd. to engage in the establishment of Beijing-Tianjin-Hebei Intercity Railway Development Fund.

The setup of Beijing-Tianjin-Hebei Intercity Railway Development Fund represents an important measure of implementing the Opinions of State Council on Reforming Railway Investment and Financing System and Facilitating Railway Construction. It is of great significance to meet the fund demands for and accelerate the construction of intercity railways in Beijing, Tianjin and Hebei, and to build the circle of Beijing, Tianjin and Hebei on railways.

With the total scale of RMB 100 billion and the initial scale of RMB 60 billion, the term of the fund is 10 years with 70% investment used for the construction of intercity railway within Beijing, Tianjin and Hebei, and 30% investment used for the comprehensive development of land along the railway.

Among all the contributions, 6 billion of contribution was made by Beijing-Tianjin-Hebei Intercity Railway Investment Co., Ltd. and 54 billion are made by entities in the society. IB Beijing Branch, by the hand of IB Trust, made a contribution of RMB 3.5 billion, so that IB Trust, as a member of the investment committee, participates in the investment decision making and routine affair management of Beijing-Tianjin-Hebei Intercity Railway Development Fund.

Beijing-Tianjin-Hebei Intercity Railway Investment Co., Ltd., a company jointly invested and incorporated by the governments of Beijing, Tianjin, Hebei and the China Railway Corporation, is responsible for coordinating and promoting the investment, construction, operation and resource development for the intercity railway project in Beijing, Tianjin and Hebei. In 2015 when the company was just established, it discussed with IB Beijing Branch on the key details and financing schemes related to the setup of Beijing-Tianjin-Hebei Intercity Railway Development Fund for many times. The scale of the fund was finalized 60 billion. IB Beijing Branch, as one of the 12 investors, made a preference contribution.

The involvement in the establishment of Beijing-Tianjin-Hebei Intercity Railway Development Fund jointly by IB Beijing Branch and IB Trust embodies an action to firmly follow the guidance of the central government and the State Council that finance should support the entity economy and service the coordinative development strategy of Beijing, Tianjin and Hebei; takes the advantages of comprehensive financial service and flexible investment and financing licenses; represents an useful attempt for keep supporting key national projects in the future.