ICBC will begin to sell CDB’s first green OTC financial bonds on September 13-14 to individual and non-financial institutional customers, which are the first green OTC financial bonds in China. These bonds, named China Development Bank’s 3rd Green Financial Bonds in 2017, are 3-year fixed-rate bonds with a bond code of 1702003 and a coupon rate of 4.19%. Individuals and non-financial institutional customers may purchase the bonds via ICBC’s e-banking and domestic outlets, of which the e-banking channels provide 24h service during the issuance period. To commemorate the successful issuance of the first green OTC financial bonds in China, ICBC and CDB will give commemorative certificates to individual investors who subscribe the bonds and complete information registration.

Themed with the protection of the water environment of the Yangtze River economic zone, these green financial bonds will be used to support three pollution prevention and control projects: the water environment protection of Hanjiang River in Xiangyang, comprehensive water ecology management of Laohuan River in Xiaogan (Phase 1), and the comprehensive control of the water environment of the Zhupi River Basin in Jingmen (urban section). In addition to the common advantages of OTC CDB bonds, these bonds will also be significant for raising investment awareness of investors and expanding social influence of green finance. In addition, issuance of the green financial bonds through the OTC market opens a new channel for the public to make sound investment. This is not only a manifestation of Inclusive Finance, but also offers an innovative, safe, and standard new channel for the development of green finance.

The OTC CDB bonds feature high credit rating, good security, low  trading threshold and fixed income. The threshold and minimum incremental unit are both RMB 100 par value. The bonds can meet the public needs for safe, transparent investment with moderate yields. Since the first sale of CDB bonds through the OTC of commercial banks in May 2014, ICBC has distributed 22 OTC CDB bonds on regularly basis. The  issuance of OTC CDB bonds shows that the counter market of commercial banks plays an increasingly important role in the bond distribution channels which is of great significance for broadening financing channels of issuers, reducing financing cost and building a multi-level bond market system.