INVESTMENTS IN DEBT
Except for the legal person of ICG's investment subject, no other individual or institution has the right to sign the investment agreement with the project party on behalf of ICG. ICG does not charge any fees other than investment returns and management fees during the investment process.
business > investment in debt

ICG's debt investment business closely follows the national decision-making and deployment. Taking High quality development subject of debt reduction financing for state-owned enterprises in the new era, ICG actively guides high-quality capital to support state-owned enterprises enterprises in the form of debt financing. ICG focuses on solving the problems of high debt ratio, difficult financing and expensive financing, effectively reduces the enterprise liability scale, enhances the capital liquidity, improves the anti-risk capabilities, and ensures the sustainable and stable development of state-owned enterprises. ICG successfully helped hundreds of well-known domestic enterprises to obtain debt investment support so far, with an accumulated amount over 10 billion RMB, which is highly recognized by the government, enterprises and the whole society.




In order to thoroughly implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the spirit of the 19th National Congress of the Communist Party of China, implement the requirements of the National Conference on Stabilizing the Economy held by the State Council on May 25, 2022 and the subject of "High-quality Development of China's Infrastructure Construction" by the Party School of the Central Committee of the Communist Party of China Research and implement the requirements of the Central Economic Work Conference, the National Financial Work Conference, and the Central Finance and Economics Committee; in order to actively respond to the new challenges brought to enterprises by the new coronavirus pneumonia epidemic, accelerate the construction of a unified national market, and build a new development paradigm featuring dual circulation, in which domestic and overseas markets reinforce each other, with the domestic market as the mainstay; In order to solve the problems of high debt ratio, difficult and high cost finance of state-owned enterprises enterprises, enhance the liquidity of enterprises and ensure the sustainable and stable development of state-owned enterprises enterprises: as a state-owned joint-stock investment group, ICG is required to carry out High quality development subject of debt reduction financing (DRF) for state-owned enterprises in the new era for national grass-roots state-owned enterprises enterprises to relieve their finance pressures under the current situation.


United Capital Management (UCM)

The United Capital Management (UCM) project is a structured financing product composed of inferiors and priorities. The inferiors are solved by ICG for the enterprise applying for financing by issuing financial products, and the priority is paid by ICG. The solutions for inferior United Capital Management (UCM) include: joint directional equity asset management plan (also known as "joint assets"), syndication factoring, union trust, joint bonds, joint lease, joint pledge of accounts receivable, joint short-term financing bonds, joint PPN, joint medium-term notes, etc.

Debt-to-Equity Swap (DES)

The Debt-to-Equity Swap (DES) plan is a joint venture established by ICG and the financing applicant (the financing company could choose not to consolidate the financial statements), and ICG and the financing applicant provide double guarantees (compared to self-issue by the financing company the cost can be reduced by 1%/year-2%/year). ICG subscribes for inferior products issued by the joint venture company, and organizes other financial institutions to subscribe for priority shares. The financing company can use part of the fund from the joint venture company to " borrow the new to repay the old " (the company can use it to repay the debts that are about to mature, or for other purposes); The other part is used to work together with ICG to make industrial equity investment in local high-quality industries or national high-quality industries selected by ICG, so as to generate large profits through IPO, mergers and acquisitions etc. Therefore, the local state-owned company not only solves the problem of "borrowing new to repay old" but also obtains the benefits of industrial equity investment through the Debt-to-Equity Swaps (DES).

Long Term Financing

High quality development subject of debt reduction financing (DRF) for state-owned enterprises in the new era provided by ICG is for mid-long term financing, which solves the long-term financing problems for the company and improves the efficiency of the capital use.

Low Cost Financing

Generally, there is a higher financing cost to companies in mainland China and it may not meet the demand for debt reduction. However, the introduction of low-cost funds from Hong Kong and Macao through ICG's TRS debt fund can significantly reduce the capital cost for the company.

High Allowance

The company applying for High quality development subject of debt reduction financing (DRF) for state-owned enterprises in the new era are generally state-owned companies with the credit rating of AA or above. If a large amount of capital is needed, it is difficult to meet the financing demand through domestic financing channels once. Through DRF project, ICG investment funds can be allocated in accordance with a certain proportion of inferiors and priorities, and then satisfies the capital needs of the company.

Optimize Asset Structure

Through ICG’s three investment models, respectively capital increase and share expansion, the Debt-Equity Swap and SPV project, it can help the companies to achieve debt reduction and off balance sheet , which significantly improves their debt structures.