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ICBC Reissues CDB Green financial bonds on November 22

On November 22-23, ICBC reissued the 3rd tranche of CDB Green financial bonds of 2017 to individual and non-financial institutional customers. Funds raised, in accordance with applicable laws and approval of regulators, will be used specially to support such green projects as environment protection, energy saving, clean energy and clean transportation, so as to support environmental improvement, tackle climate change, and promote the building of China’s green financial system.

It is learned that, the 3rd tranche of green financial bonds reissued by CDB in 2017 via the over-the-counter (OTC) market for the first time, namely CDB 3rd green financial bonds in 2017, are 3-year coupon bonds with fixed interest rates. With bond code of 1702003 and par value of RMB100, the value date, payment arrangement, coupon rates, trading and custody methods, etc. are the same as other tranches of CDB bonds over the same period. With a coupon rate of 4.19% pricing at RMB99.97/RMB100 face value, this bond has a yield-to-maturity rate of 4.5071% for reference. This 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.

According to an ICBC official, 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 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 bonds through commercial banks in May 2014, ICBC has distributed 27 tranches 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 cost and establishing a multi-tiered bond market system.