Laws of the People's Republic of China

People's Bank of China

Official Reply of People's Bank of China on Issuing of RMB Bonds by International Financial Corporation in China's Interbank Bond Market

Yin Fu [2005] No. 73

To International Financial Corporation£º

We acknowledged the receipt of the application on issuing of RMB bonds in China submitted by your bank. In accordance with Interim Measures for the Administration RMB Bonds Issued by International Development Agency (Announcement of People's Bank of China, the Ministry of Finance, National Development and Reform Commission, China Securities Regulatory Commission [2005] No.5) and Measures for the Issuing of Financial Bond in the National Interbank Bond Market (Decree of People's Bank of China [2005] No. 1), the official reply is hereby given as follows:

1.

Your bank is entitled to issue RMB bonds worth RMB 1.3 billion within the term 10 years in China's interbank bond market.

2.

Your bank is requested to contact with such related departments as China Government Securities Depository Trust and Clearing Co. Ltd, to make well preparation for the bonds issuing and disclose the related issuance documents to market within three working days prior to the issuing of bond.

3.

Your bank shall do well information disclosure, and disclose annual report periodically as well as such important matters as important changes promptly within the bond duration by referring to the related rules on the issuing of financial bond in China's interbank bond market.

4.

Your bank shall report the performance of bond issuing to People's Bank of China within 10 working days after the conclusion of bond issuing.

5.

Upon its conclusion, the bonds issued by your bank shall be circulated and negotiated in China's interbank bond market in accordance with the provisions of People's Bank of China.

People's Bank of China

October 9, 2005