On November 15 and 16, ICBC concurrently launched two bonds reissued by China Development Bank (CDB), i.e., CDB’s 9th and 11th tranches of financial bonds in 2017. These bonds target at personal customers and non-financial institutional customers. Specifically, as CDB’s poverty-alleviation special financial bond, funds raised from the 9th tranche will all be used to support 9 anti-poverty relocation loan projects, distributed in Gansu, Guangxi and Guizhou Province etc., covering around 550,000 poverty-stricken people with archives in total.

It is learned that, the 9th tranche of financial bond, reissued by CDB in 2017 via the over-the-counter (OTC) market for the first time, is a 3-year coupon bond with fixed interest rates. With bond code of 170209 and par value of RMB100, the value date, payment arrangement, coupon rate, trading and custody methods, etc. are the same as other tranches of CDB bonds over the same period. With a coupon rate of 4.14% pricing at RMB99.76/RMB100 face value, this bond has a yield-to-maturity rate of 4.5208% for reference. Meanwhile, the 11th tranche of financial bond, reissued by CDB in 2017 via the OTC market for the first time, is a 1-year coupon bond with fixed interest rate. With bond code of 170211 and par value of RMB100, the value date, payment arrangement, coupon rate, trading and custody methods, etc. are the same as other tranches of CDB bonds over the same period. With a coupon rate of 3.83% and a reissuance price of RMB99.99/RMB100 face value, this bond has a yield-to-maturity rate of 4.1595% for reference. These two reissued financial bonds are available for customers through the e-banking and outlets of ICBC, and the bonds are on sale 24-hour via e-banking during the period of issuance.

An ICBC official said that, by introducing reissuance mechanism into CDB bonds via the counters, the OTC market will be further compliant with the issuing rules of inter-bank market, increasing the bond liquidity. In this way, customers can seize the opportunity to re-subscribe bonds already held during the period of reissuance, taking initiative in investment management. Since CDB’s first offering of bond through commercial banks in May 2014, ICBC has distributed 26 of CDB bonds on a regular basis. The regular issuance and reissuance of CDB bonds via counters signify the increasing importance of commercial banks OTC bond market in the bond distribution channel, which is of great importance in expanding financing channels for issuers, reducing financing costs and establishing a multi-tiered bond market system.