ICBC offers RMB 8.06 bln in loans for rebuilding

Industrial and Commercial Bank of China Co. (ICBC) announced yesterday RMB 8.06 billion (US$1.17 billion) have been offered in loans to companies and public utilities for reconstruction in the aftermath of the May. 12 earthquake which hit Sichuan Province.

The country's largest lender has signed a financing agreement with Chengdu municipal government for supporting reconstruction projects. China's financial institutions had provided RMB 52.95 billion in reconstruction loans for quake-hit areas by Sunday, of which RMB 44.6 billion went to Sichuan.

The earthquake has caused severe damages to industrial companies and public utilities. The State Council has promised a six-month extension of all loan repayments in arrears due to the quake. Affected companies would be given priority in applications for initial public offerings on the stock market or refinancing plans if already listed. They would also be encouraged to raise funds for reconstruction on the bond market, according to the State Council's announcement yesterday.