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Underwriting of Hybrid Capital Bond (Commercial Bank)

I. Introduction
Hybrid capital bond (commercial bank) refers to bond issued by commercial banks. Liquidation of principal and interest is behind the subordinated debt and before the equity capital of the commercial banks.
Hybrid capital bond (commercial bank) is one kind of financial bond. Offering period and type of bond can be flexibly designed according to the financing needs of issuers.

II. Target Clients
Commercial banks established in China (excluding Hong Kong, Macau and Taiwan) need to raise capital.

III. Functions and Features
Hybrid capital bonds fill the gap left behind by the supplementary capital (existing subordinated debt and general provisions) to meet 100% core capital. Issuance of hybrid capital bonds increases the ratio of supplementary capital as required by regulatory authority in order to better guard against risks.

IV. Advantages
1. Strong underwriting: ICBC is a Class A bond underwriting member under the Ministry of Finance, Class I trader of People's Bank of China's open market, the earliest commercial bank in China to be qualified for the underwriting of debt instruments issued by non-financial companies. For years ICBC has been named excellent underwriter and excellent trader by the Ministry of Finance and People's Bank of China.
2. Rich experience: ICBC has a team of professional staff experienced in bond underwriting, and a comprehensive, effective internal mechanism in place for customer service, credit risk assessment and underwriting execution.
3. Good relationship: ICBC maintains good contact with regulatory authority and good relationship with the investors. ICBC is able to underwrite hybrid capital bond issued by commercial banks as scheduled.

V. Price
The interest rate is determined by the offering period, issuer's credit rating and market conditions. Market rate and opinions from regulatory authority are used as reference.

VI. Service Channel and Hours
Commercial banks are welcomed to contact ICBC directly during office hours, based on own financial requirements.

VII. Steps
1. Verify: Customers must supply application documentation to ICBC required by the regulatory authority. ICBC will proceed due diligence, assess credit risk, and sign agreement with customers.
2. Approval: ICBC sends the application documentation to China Banking Regulatory Commission and People's Bank of China for approval.
3. Issuance: ICBC starts the offering once approved by regulatory authority.

Note: Information herein is for reference only. Refer to the announcements and regulations of local branches for further details. Industrial and Commercial Bank of China Limited reserves the final right of interpretation.

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