In 2005, ICBC stretched its arms in syndicated loan market through launching innovative services. According to the internal statistics, 64 syndicated projects were concluded in the whole year involving loans amount of RMB 283.19 billion in local and foreign currencies. Amongst, RMB 48.28 billion (including RMB and foreign currencies) was undertaken by ICBC, doubled when compared to the amount in 2004.

A person-in-charge from ICBC concerned department introduced that syndicated loan projects closed last year were mainly in China. 46 domestic syndicated loans amounted to RMB 45.43 billion (including RMB and foreign currencies) were finalized, accounting for 94.1% of the total. Industry sectors involved were mainly power, city infrastructure, transportation, real estate, oil and petrochemical.

ICBC played an increasing role in the syndicate while amount undertaken and market shares in syndicated loans continued to expand. According to the internal statistics, ICBC was the lead bank for 19 syndicated projects out of the 64 concluded. Among the total loan amount of RMB 41.23 billion, ICBC undertook RMB 20.3 billion. Number of syndicated projects that ICBC involved as co-lead bank, participating bank or other roles was 45, with syndicated loan amount up to RMB 241.96 billion. Together, RMB 27.98 billion out of this was undertaken by ICBC.

Syndicated loans are loans or other credits to the same borrower from syndicates formed by several approved banks and other financial institutions under the same lending conditions and agreement. Syndicated loans have significant meaning in filling the gaps of bilateral loans when compared to those traditional. Banks can evaluate the risks on borrower separately and communicate with each other on loans organized through syndicates. Through multilateral mechanism employed in checking, balanced control and supervision, information asymmetry can be avoided effectively so that banks can identify and spread the risks. Banks participate in syndicate have to come into consensus on the lending conditions, such as interest rate and terms, in order to stop any unfair competition among the banks who may try to drive down the conditions. Syndicated loan can wholly reflect the funding needs of customers and the supply from banks, which can contribute to the formation of a market interest rate. As for customers, time is shortened and cost is lower to raise capital since syndicated loan can help to eliminate the repeating discussions with banks.