China Development Bank granted CNY 261.9 billion?(about $38.68 billion )?of loans to support the country’s science and technology innovation in 2022

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China Development Bank issued loans to?the country’s science and technology sectors, worth a total of CNY 261.9 billion ($38.68 billion) in 2022.

The vast majority of these loans?went to companies innovating integrated circuits, biological breeding, aerospace science and technology, and intelligent robots. Over?90% of the loans went to mid-term and long-term initiatives.

A total of 13.1 billion yuan ($1.84 billion) in loans was granted to so-called “sophisticated” and niche small businesses in the first three quarters of 2022, providing support for 115 specialized SMEs that produce novel and unique products.

Another 12 billion yuan of “Bond Connect” green financial bonds went to the eco-friendly infrastructure upgrade. So far, CDB has issued 156 billion yuan of sustainable financial bonds in total.

Established in 1994, the China Development Bank (CDB) is a state-funded and state-owned development finance institution. It is dedicated to supporting the national economy both in key industries and underdeveloped sectors.

CDB is at the forefront of China’s domestic economic growth, pioneering a lending scheme for local governments and businesses. It is granting billion-yuan worth of credit lines to Chinese solar and wind power makers, infrastructure providers, and scientists. At the same time, the bank is helping?its leading companies to “go global.”

The Bank raises its capital by issuing bonds with various terms of up to 30 years to institutional investors in China’s interbank bond market and foreign markets. Being 100% state-owned, CDB sees its debt implicitly guaranteed by the Chinese state. As a result, CDB can provide lower interest rates and longer-term loans than other Chinese financial institutions.