BEIJING, July 23 -- China is set to support prominent, creditworthy companies that promote high-quality development within the real economy by allowing them to borrow medium to long-term foreign debt.

The National Development and Reform Commission (NDRC) announced this initiative Tuesday as part of the country's strategy to further open up and enhance cross-border financing facilitation.

According to a circular released by the NDRC, companies must meet several criteria to qualify, including compliance with national policies. Their business operations must align with national macroeconomic controls and industrial policies.

Besides, over the past year, the company's revenue must rank within the top five in its industry, with debt-to-asset ratio and other financial metrics outperforming the industry average. The companies must possess an international credit rating of investment grade (BBB or above) or a domestic credit rating of AAA.

The NDRC said the new measures aim to expand high-level opening up, improve the convenience of cross-border investment and financing, and effectively utilize foreign debt to support high-quality development.

The measures, which will come into effect on July 29, 2024, and remain valid until July 29, 2029, will manage the borrowing of foreign debt by eligible companies through a review and registration system.

Medium to long-term foreign debt refers to debt instruments issued by companies within China or their overseas subsidiaries or branches, denominated in either local or foreign currency, and with a term exceeding one year. These instruments include perpetual debt, medium-term notes, and convertible bonds.

The administrative measures for reviewing and registering enterprises' medium to long-term foreign debt took effect on Feb. 10, 2023, providing a regulatory framework for these debt instruments.

According to the new initiative announced Tuesday, the NDRC will implement special reviews on the existing management basis for high-quality enterprises applying for foreign debt registration. The process will involve appropriate simplification of related requirements and acceleration of approval procedures.

The NDRC will actively support high-quality enterprises of various ownership structures in borrowing foreign debt. It also plans to adjust the criteria for defining high-quality enterprises in accordance with national macroeconomic controls, industrial policies, and the overall foreign debt situation.

By supporting leading companies in securing medium to long-term foreign debt, China aims to fully leverage the role of foreign debt funds in serving high-quality development and enhancing the quality and level of external circulation.