NDRC to support high-quality companies to borrow foreign debt to support real economy

MySteel Global: China will support high-quality companies to borrow medium-and long-term foreign debt to support the development of the real economy, according to a notice recently released by the National Development and Reform Commission (NDRC), the country's top economic planner.

The companies should have a prominent position in an industry, have good credit profile and play a leading role in promoting the "high-quality" development of the real economy, it said.

These companies must comply with relevant regulations and macro-control policies, be among the top five in their industry, demonstrate strong financial performance, and maintain a good credit rating of investment grade (BBB or above) or a domestic credit rating of AAA, it said.

They should also have a clean record of debt repayment, no major violations, and receive a positive assessment from a registered accountant, according to the notice.

The NDRC will also guide companies to use foreign debt to facilitate the implementation of major national strategies and build the country's modern industrial system, according to the notice.

"Provincial level development and reform departments can provide services based on the local situation, actively support and guide high-quality enterprises in the region to stabilise their development expectations, enhance growth confidence and reasonably carry out the medium- and long-term foreign debt financing," the NDRC said.

The move aims to further expand high-level opening-up, enhance cross-border investment and financing facilitation, and support high-quality enterprises in better integrating domestic and international markets and resources, the state planner said.

Note: This article has been written in accordance with an article exchange agreement between MySteel Global and BigMint.