On September 20-21 ICBC will sell the re-issued 7th CDB Financial Bonds of 2017 to individual and non-financial institutional customers. The bonds are one-year fixed-rate bonds with a code of 170207 and a par value of RMB 100. The value date, redemption arrangement, coupon rate, transaction and custody are the same as those of the previously issued CDB bonds of the same term. The coupon rate is 3.53% with a price of RMB 100.49/RMB100 par value and a yield-to-maturity of 3.7815%. Customers can subscribe for the bonds through ICBC’s e-banking channels and outlets, of which the e-banking channels provide 24h service during the issuance period.

According to an official of ICBC, the bond re-issue is an issuance mechanism where the issuer issues additional bonds that have entered the trading period. The value date, coupon rate, redemption arrangement and maturity date of the add-issuance are the same as those of the bonds of the same term. The re-issue price is usually different from the initial price. The re-issue mechanism for OTC bonds of CDB will bring the OTC market closer to the interbank market issue rules and increase the bond liquidity. In addition, customers can take the market opportunities during the re-issuance to re-subscribe for the bonds they already hold and manage their investments.

Since the first sale of CDB bonds through the OTC of commercial banks in May 2014, ICBC has distributed 24 OTC CDB bonds on regular basis. The issuance and re-issuance of OTC CDB bonds show that the OTC market of commercial banks plays an increasingly important role in the bond distribution channels, which is of great significance for broadening financing channels of the issuers, reducing the financing cost and building a multi-tiered bond market system.