ADBC to issue RMB 260 bln bonds in 2008

The Agricultural Development Bank of China (ADBC), a policy bank directly under the state council, plans to issue RMB 260 billion (US$36.6 billion) worth of bonds this year.

The proceeds will be used to boost China's rural development and procurement of major farm products, such as grain, cotton and edible oil, vice president of ADBC Ding Jie said. The bank has committed itself to make the bond issuing procedures more transparent, in an effort to improve bond management in 2008, according to Ding.

The bank's profit jumped 70% to RMB 14.9 billion last year. To date, the combined volume of bonds issued by ADBC has amounted to RMB 743 billion.

ADBC was founded in 1994 by China's central government to offer financial support to rural and agricultural development. It currently has 2,000 branches nationwide. By last year, the bank's non-performing loan ratio stood at 6.29%, down 1.36% from a year earlier.