ICBC will issue, as an agent, this year’s first 3-year OTC bonds of China Development Bank (“CDB”) on August 19-21 and August 24-26 to individual and non-financial institutional customers. Since 2015, the Bank has issued four 1-year OTC CDB bonds in the same way in February, April, May and July, respectively. This issue, as the 17th tranche of financial bonds by CDB, is the first 3-year fixed-rate and interest-generating bonds of a new security type, issued in the OTC bond market, which can meet diversified investment needs of customers. The bonds carry a coupon rate of 3.26%, and can be subscribed via ICBC’s e-banking channels and outlets, of which the e-banking channels provide 24-hour continuous trading during the issue period (weekends excluded). In addition, the issue period for the CDB bonds is extended to six working days in total, longer than previous tranches, for the convenience of customers.

According to an ICBC official, the Bank is currently the only commercial bank in the market that provides 24-hour continuous trading in OTC bonds. In other words, during the issue period, customers can subscribe for the bonds not only via the aforesaid channels during normal business hours, but also through internet banking and mobile banking from 16:30 till the opening time of outlets next day. For instance, after logging into the Bank’s internet banking portal, personal customers can enter the “Online Bonds” column, click the “Buy” button on the right of the bonds to be subscribed for in the “Market and Transaction” section and complete subscription as instructed. After close of the issue period, the OTC CDB bonds will become negotiable. Then customers can buy or sell the bonds at any time during trading hours via the Bank’s e-banking channels or outlets, with transaction funds settled on a real-time basis.

Industry experts said that OTC CDB bonds feature a high credit rating and security level, with the trading threshold and the minimum incremental unit both being RMB 100 in face value, which can effectively meet the investment needs for safe and transparent bond products with medium returns. The normalized issue of OTB CDB bonds signals the increasingly important role of commercial banks in bonds distribution in the OTC bond market, which is of critical significance to broadening the financing channels of issuers, lowering funding costs and building a multilayered bond market system.

China Central Depository & Clearing Co., Ltd. is the depository and custodian of the OTC CDB bonds, as well as OTC account T-bonds and all the innovative securities launched so far. In recent years, it has vigorously supported OTC bond business innovation by sponsor banks and issuers, and substantially contributed to the rapid development of OTC bonds.