ICBC will simultaneously launch additional issuance of two China Development Bank (CDB) bonds to individuals and non-financial institutional customers from August 16 to 17, namely the 5th and the 7th financial bonds of CDB in 2017. Fund raised by the 5th financial bond will be used for long-term loans for three remote poverty-alleviation relocation projects in Sichuan, Jiangxi and Hunan Province. 433,400 registered poverty-stricken people will be covered.

The 2017 5th CDB financial bond is a 3-year fixed-rate coupon bond. The bond code is 170205 and the face value RMB 100. Its value date, redemption arrangement, coupon rate as well as methods of trading and custody are the same to the previously issued 3-year CDB bond with a coupon rate of 3.88%. The re-issue price is RMB 100.96 with the yield to maturity at 4.0046%. The 2017 7th CDB financial bond is re-issued for the second time in the OTC market. It is a one-year fixed-rate coupon bond with a code of 170207 and face value of RMB 100. Its value date, redemption arrangement, coupon rate and methods of trading and custody are the same to the previously issued 1-year CDB bond with a coupon rate of 3.53%. The re-issue price is RMB 100.36/RMB100 face value with the yield to maturity at 3.5257%. Customers can subscribe for the two bonds via both ICBC e-banking channels and outlets. The e-banking channel supports 24-hour non-stop trading.

An ICBC official said that the re-issue mechanism for OTC CDB bonds will bring the OTC market closer to issuance rules in the interbank market and improve bond liquidity. Customers can seize the market opportunity to re-subscribe for bonds  during re-issuance for investment purpose. Since CDB bonds were sold via counters of commercial banks for the first time in May 2014, ICBC has distributed 20 OTC CDB bonds on regular basis. The re-issuance of OTC CDB bonds reflects the increasingly important role of commercial bank OTC bond market in bond distribution, carrying strong implicature in expanding financing channels, reducing financing cost and building a multi-layer bond market system.