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ICBC Sells Two Tranches of CDB Financial Bonds as of September 18
 

Industrial and Commercial Bank of China (ICBC) will simultaneously sell the eighth tranche of China Development Bank (CDB) financial bond in 2019 (5-year reissued) to both individuals and corporate customers on September 18 and 19, and the seventh tranche of CDB financial bond in 2019 (3-year reissued) to both individuals and corporate customers on September 20 and 23. Customers can subscribe for these two tranches of financial bonds through ICBC e-banking channels and business outlets. The e-banking channels provide around-the-clock services during the issuing period.

It is reported that the eighth tranche of CDB financial bond in 2019 reissued for the eighth time in the over-the-counter (OTC) market is a five-year fixed-rate coupon bond. The par value and coupon rate is RMB100 and 3.42% respectively, reissue price is RMB101.68 per RMB100 par value, and the reference yield to maturity corresponding to the reissued price is 3.2045%. The seventh tranche of CDB financial bond in 2019 reissued in the OTC market is a three-year fixed-rate coupon bond. The par value is RMB100 and coupon rate is 3.18%, reissue price and the reference yield to maturity corresponding to the reissued price will be determined by the interbank market bidding on September 19.

Bond reissue means that issuers make additional issue of bonds that have already been traded in the market after the initial issue. The introduction of the reissuing mechanism for OTC CDB bonds will make the OTC market more tailored to the issuing rules of the interbank market, improving bond liquidity. Customers can grasp the opportunity to re-subscribe for the bonds they already hold during the reissuing 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 134 tranches of OTC CDB bonds.


(2019-09-20)
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