Shandong Province introduces incentive measures for direct debt financing guidance

Recently, the Department of Finance of Shandong Province, the Jinan Branch of the People's Bank of China, the Provincial Development and Reform Commission, the Provincial Financial Office, and the Shandong Securities Regulatory Bureau jointly issued the "Guiding and Rewarding Measures for Direct Debt Financing in Shandong Province", promoting the stable and orderly development of direct debt financing and actively preventing and resolving local financial risks.

The reward system is formulated based on the principles of "comprehensive coverage, key support, appropriate rewards, and promotion of innovation", with a wide range of rewards and strong targeting.

In terms of financing entities, in order to improve the bond issuance environment for small and medium-sized enterprises, the government focuses on supporting relatively difficult to issue small and medium-sized enterprises. In terms of intermediary institutions, full reward coverage will be implemented for underwriting institutions, guarantee and risk mitigation institutions, and higher reward standards will be set for risk mitigation and guarantee credit enhancement institutions. In terms of product innovation, a special innovation award is set up to reward innovative products that serve the transformation of old and new driving forces, green finance development, rural revitalization and other key actions, further enhancing the driving force of innovative development.

To highlight the positive role of the team in supporting debt financing work, the reward policy specifies that financial institutions, guarantee and risk mitigation institutions, and corporate issuers can use no more than 50% of the reward funds for team building, effectively stimulating the enthusiasm of business teams.

Simultaneously maximizing the efficiency of fiscal funds. To expand the scope and effectiveness of policy benefits, different types of reward standards and ranges have been determined. Among them, state-owned enterprises and private enterprises that meet the conditions will be rewarded at a rate not exceeding 0.01% and 0.02% of the issuance amount, respectively; Adopt a cumulative system for the lead underwriter, with rewards ranging from 0.01 ‰ to 0.02 ‰ of the underwriting amount; For guarantee and risk mitigation institutions, rewards will be given at a rate not exceeding 0.01% and 0.1% of the issuance amount, respectively.

Source: Shandong Provincial Financial Office, Weifang Binhai Guotou Group