Recently, China's Industrial Bank (CIB) successfully executed one of the market's first pilot M&A loans for technology enterprises, providing acquisition financing to a Chengdu-based listed private tech company. This M&A loan covers over 78% of the total transaction value with a 10-year tenor, representing CIB's innovative approach to precisely channel "financial vitality" into technological innovation.
In early March, the National Financial Regulatory Administration initiated a pilot program to moderately relax M&A loan policies for technology enterprises, designating 18 cities including Beijing, Shanghai, and Chengdu as pilot zones to foster sector growth. For "controlling stake" mergers, the pilot program raises the loan-to-transaction ratio ceiling to "no more than 80%," and extends maximum tenor to "generally not exceeding ten years."
The acquiring enterprise is recognized as a National Technological Innovation Demonstration Enterprise and a National Enterprise Technology Center. By extending M&A loans, CIB delivers long-term funding support, empowering enterprises with robust financial backing to optimize resource integration, enhance operational structures, and solidify industry leadership.
CIB stands as a key participant in the inaugural technology enterprise M&A loan pilot initiative. By proactively aligning with regulatory directives, refining policy compliance frameworks, and establishing expedited approval channels for regional tech firms, the bank has facilitated pilot service implementation to drive operational efficiency across multiple cities including Chengdu, Xiamen, Shanghai, Hefei, Changsha, Guangzhou, Chongqing, and Wuhan.
In recent years, CIB has advanced its "commercial banking + investment banking" strategy by evolving M&A financing from standalone products to ecosystem scenarios. The bank synergizes M&A loans with diverse investment and commercial banking solutions to support private sector growth, state-owned enterprise reform, and technological innovation. As of 2024, CIB's M&A loan balance approaches RMB 250 billion, ranking first among joint-stock commercial banks.