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ICBC Will Sell Five Tranches of CDB Financial Bonds as of January 16
 

Industrial and Commercial Bank of China (ICBC) will simultaneously sell the first and second tranches of China Development Bank (CDB) financial bonds in 2019 and the fourteenth tranche of CDB financial bond in 2018 to both individuals and non-financial institutions on January 16 and 17. ICBC will simultaneously sell the eleventh tranche of CDB financial bond in 2018 and the fifth tranche of CDB financial bond in 2019 to both individuals and non-financial institutions on January 18 and 21. Customers can subscribe for these five tranches of financial bonds through either ICBC e-banking channels or business outlets. The e-banking channels provide 24-hour uninterrupted services during the issue period.

It is reported that the first tranche of CDB financial bond in 2019 reissued for the first time in the over-the-counter (OTC) market is a one-year fixed-rate coupon bond. The par value is RMB100 and coupon rate is 2.54%, reissue price is RMB100.11 per RMB100 par value, and the reference yield to maturity corresponding to the reissued price is 2.4957%. The second tranche of CDB financial bond in 2019 newly issued in the OTC market is a three-year fixed-rate coupon bond. The par value is RMB100 and coupon rate is 3.03%. The fourteenth tranche of CDB financial bond in 2018 reissued for the fourth time in the OTC market is a seven-year fixed-rate coupon bond. The par value is RMB100, coupon rate is 4.15%, reissue price is RMB103.84 per RMB100 par value, and the reference yield to maturity corresponding to the reissued price is 3.6590%. The eleventh tranche of CDB financial bond in 2018 reissued for the seventh time in the OTC market is a five-year fixed-rate coupon bond. The par value is RMB100, coupon rate is 3.76%, and the reissue price and the reference yield to maturity corresponding to the reissued price will be determined by bidding in the interbank market on January 17. The fifth tranche of CDB financial bond in 2019 reissued for the first time in the OTC market is a ten-year fixed-rate coupon bond. The par value is RMB100, coupon rate is 3.48%, and the reissue price and the reference yield to maturity corresponding to the reissued price will be determined by bidding in the interbank market on January 17. The value date, redemption arrangement, coupon rate, trading and custody methods are the same as those of the previous CDB bond of the same tranche.

Bond reissue means that issuers make additional issue of bonds that have already been traded in the market after initial issue. The introduction of the reissue mechanism for OTC CDB bonds will make the OTC market more tailored to the issue rules of the interbank market and increase the bond liquidity. Customers can grasp the market opportunity to re-subscribe for the bonds they already hold during the reissue period, in order to properly manage their investment portfolios. Since CDB bonds were first offered over the counter of commercial banks in May 2014, ICBC has regularly issued 93 tranches of OTC CDB bonds.


(2019-01-22)
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