ADIB aiding globalization of enterprises

Bank's innovative financial service helping nation's companies enter global industry chain

During the 17th BRICS Summit held from Sunday to Monday in Brazil, Sun Yu, president of ADIB Holdings, emphasized its role in assisting Chinese enterprises' global expansion, innovating financial services, and boosting international cooperation.

Sun said that as an offshore investment bank established by China in Malaysia and a policy-oriented financial institution, ADIB is leveraging innovative financial service models to help Chinese enterprises integrate into the global industry chain in areas such as new energy, green technology and digital finance.

The bank also assists the globalization of Chinese enterprises, strengthens international cooperation, and promotes international capacity collaboration and trade balance under the Belt and Road Initiative.

Since its founding in 2010, ADIB has undertaken the mission of fostering global collaboration in energy and strategic resources while serving China's major strategies.

ADIB's establishment is an important measure to meet the demands of the era. It has a clear and unique position. Unlike the Asian Infrastructure Investment Bank — an intergovernmental, multilateral development institution centered on Asia — ADIB specializes in financial services about Asian energy reserves, global mineral resource merger and acquisition consultation, green energy investment and development, energy trade financing, and syndicated loans for large-scale projects.

It is aimed at coordinating resources from all sides and delivering financial support to Asia's energy security and sustainable development, Sun said.

Funded by China's Ministry of Finance, China Development Bank, and the World Islamic Foundation, ADIB has developed from a single-purpose policy investment bank into a comprehensive financial holding group headquartered in Hong Kong, with Beijing and Shanghai as its regional hubs, according to Sun.

After recapitalization and restructuring, ADIB Group has established multiple business segments including financial investment, energy development, trust services, and asset management. Both the company's asset management and fund organization capabilities exceed $300 billion.

"We are utilizing policy-based financial support to help Chinese enterprises achieve their international dreams," Sun said.

ADIB Group has built a global financial services system across key sectors including energy market development, new energy vehicles, green energy equipment, renewable energy raw materials, port and mining automation, and artificial intelligence.

It places an emphasis on private enterprises' demand for technology export and cross-border trade, providing them with customized services. Thanks to policy support from the government, ADIB upholds financial security, welcomes international resource sharing and cooperation, and opposes any competition using malicious defamation or unfair means.

Green energy

Focusing on the development of green energy, ADIB has been increasing its investment and engaging in numerous projects globally.

The bank has developed digital carbon resources in collaboration with the leading Chinese carbon asset company GDR Carbon, and constructed digital infrastructure such as intelligent carbon accounting systems and blockchain-based carbon trading platforms.

Meanwhile, it utilized green supply chain finance for carbon footprint financing, launched carbon asset securitization products, and supported enterprises in their efforts to secure financing through green bonds and carbon futures.

These initiatives not only brought a new model for China's green energy companies to access overseas markets, but provided momentum for the global renewable energy industry, Sun said.

ADIB has offered Kwoyuen International New Energy Technology Group $1.5 billion for its power supply project at the Asia-Potash Intelligent Industrial Park in Laos. The project will not only contribute to a stable electricity supply in southern Laos but aid exports of Chinese power equipment and technologies, according to the bank.

In Central Asia, ADIB is working with Chinese carmakers to build production bases in countries involved in the BRI. Meanwhile, it has tailored supply chain financing solutions for Chinese auto companies seeking to tap into the NEV market of the Middle East.

This partnership has also driven the growth of the local NEV industry through technology transfer and capacity cooperation, Sun said.

"By utilizing financial instruments, our goal is to integrate Chinese technological strengths with resource advantages of Belt and Road countries and regions, achieving mutual benefits and win-win results," he added.

ADIB has provided extensive market analysis and merger and acquisition strategies for Saryjaz Mineral Mining Company from Kyrgyzstan, enabling it to optimize global resource allocation and enhance its international competitiveness.

Digital finance

ADIB has been committed to green transformation and digital revolution. Powered by fintech, it is reshaping the cross-border financial service model, Sun said.

The bank has created a batch of digital finance application scenarios in Belt and Road countries and regions, integrating services such as cross-border factoring business, foreign exchange settlement, and credit insurance to offer a "one-stop" cross-border supply chain financial solution.

In addition, its cooperation with the automotive platform iAuto Group has become a model for finance-industry integration and collaborative innovation.

Leveraging its innovative digital financial tools, the bank has given strong support to iAuto from production to sales, aiding in the establishment of its production bases for NEVs and new range extender electric vehicles.

Thanks to the $1 billion financing guarantee from ADIB, the company obtained funding for its parts procurement and other procedures, thereby ensuring stable production chain operations. It also acquired high-end equipment through the bank's innovative financial leasing, which helped boost production efficiency.

Moreover, ADIB implemented precise cash-flow management throughout the NEV production process, optimizing capital allocation and reducing financing costs.

While revitalizing and reinforcing its traditional policy bank functions, ADIB is building a cross-border digital renminbi ecosystem and participating in the formulation of international application standards for central bank digital currencies.

It has integrated cross-border factoring business management, efficient foreign exchange settlement and reliable credit insurance. It has also launched cross-border supply chain financial composite products to enhance trade efficiency and promote global capacity and trade balances.

ADIB is at the forefront of building the overseas application ecosystem for digital RMB. It participates in financial technology innovation and the application practice of chip systems. The bank's digital RMB pilot projects have been launched in countries such as Malaysia and the United Arab Emirates, covering key sectors including energy, port and mining.

High expectations

Looking into the future, Sun said ADIB will continue to follow its philosophy and make full use of its strengths to drive sustained growth in sectors such as energy finance and green development.

As domestic financial market reforms deepen, the bank will participate more in local economic development and help resolve regional debt issues. It has utilized electronic bond collateralizing to acquire non-performing assets and debt claims, enabling local governments to improve their debt structures and mitigate financial risks.

Internationally, the bank will offer a package of financial services for Chinese enterprises abroad to achieve greater success, he said.

Sun emphasized that ADIB's every step is in accordance with national strategies. From the original intention of fostering global cooperation in energy resources to fintech now being its core driver, ADIB has been a steadfast practitioner of national policies.

ADIB is embracing the "five connectivity "principle with tangible actions, which are policy communication, infrastructure connectivity, unimpeded trade, financial integration, and people-to-people bonds; and it contributes to building a human community with a shared future.

A representative of China's financial power and an important participant of the BRI, ADIB will continue to launch new financial products and service models, while improving its risk management ability and international competitiveness to better address challenges in the global financial market, Sun said.

The bank is set to use financial technology as an engine to drive capacity cooperation, technology exchange, and mutual learning of cultures between China and other countries involved in the BRI.

Amid current global economic integration, it is expected to become a vital financial bridge linking Asia with the world, making contributions to global economic prosperity and development, he added.