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 Asian Development Bank in China's Interbank Bond Market

Yin Fu [2005] No 74

To Asian Development Bank:

We acknowledged the receipt of Application Report on Issuing of RMB Bonds by Asian Development Bank in 2005 submitted by your bank. In accordance with the related provisions in Interim Measures for the Administration of 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 Issuance 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 billion within the term of 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 issuance and disclose the related issuance documents to market within three working days prior to the issuance 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 issuance of financial bond in China's interbank bond market.

4.

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