The State Development Bank of China (SDB) is a credit the world can expect to hear more about.
Although it has so far made only two overseas fund raisings, following the success of its inaugural yankee and samurai issues, it is expected to return to these and other markets in the near future.
The SDB was established in 1994 as a policy-oriented financial institution, reporting directly to the state council, with a responsibility to procure financing for major projects in China. Projects it finances are generally sent by government to the SDB. However the bank claims it maintains the right to reject proposals sent to it following its own due diligence.
As a new elite organization, the SDB has been able to draw on a number of professionals with experience in London and New York. Several others are believed to have had training with organizations such as IBJ.
Since 1994 the SDB has built up its balance sheet to Rmb280 billion. In the year to December 31 1996 it reported an after tax profit of Rmb606 million.
The bank has equity (all owned by the Chinese government) of Rmb31 billion.