A resolution passed at the first extraordinary general shareholders' meeting of 2007 held on October 19 has authorized the Company to issue up to RMB50 billion of financial bonds in the national inter-bank bond market (to be issued in two phases). Upon verification and approval by the Reply of China Banking Regulatory Commission Concerning Industrial Bank Issuing Financial Bonds (Yin Jian Fu [2008] No.187) and Decision of People's Bank of China on Administrative Approval (Yin Shichang Xu Zhun Yu Zi [2008] No.24), the Company is planning to issue Phase I Financial Bonds of Industrial Bank 2008 with a total amount of no more than RMB15 billion in the national inter-bank bond market. The bonds will be issued in the near future and are general liabilities in character. The capital raised by issuing such financial bonds will serve as a stable source of liabilities and be used for sound assets projects so that the Company can maintain the relatively high return on assets ratio seen at present.
The Company will strictly conform to the applicable provisions in the Administrative Rules for the Issuance of Financial Bonds in the National Inter-bank Bond Market and submit the relevant documents to the People's Bank of China for filing 5 working days prior to the issuance of the financial bonds. It will also prepare the documents on bonds issuance and information disclosure properly as stipulated in the relevant regulations.
Upon the completion of issuance, the financial bonds of the Company may be negotiated and transferred in the national inter-bank bond market as stipulated in the pertinent provisions of the People's Bank of China.
Board of Directors
Industrial Bank Co., Ltd.
August 5, 2008