ICBC will sell CDB’s 4th issue of financial bonds of 2017 to retail and non-financial institutional customers from May 24 to 25, representing the first time for a commercial bank to distribute CDB bonds in OTC market. Customers can subscribe for the bonds through ICBC’s E-banking channel and outlets. The E-banking will provide 24-hour non-stop trading during the issuance period.

Re-issuance of bonds refers to the additional issuance by the issuer to the initially-offered bonds which have entered the trading phase. The value date, coupon rate, payment arrangement and maturity date of the reissued bonds should be the same as those in the previous period, while the actual issue price is usually different from the original issue price. The reissued 4th CDB financial bond of 2017 is a coupon bond with a fixed interest rate and a term of one year. The bond code is 170204 and the face value is RMB 100, with the value date, payment arrangement, coupon rate, transaction and custody methods identical with those of the previous CDB bonds. With a coupon rate of 3.20%, the reissue price is RMB100.04 per RMB100 face value, which indicates a Yield to Maturity of 3.9620%. The introduction of the reissue mechanism of CDB bond in OTC market will make the OTC market better aligned with the inter-bank market issue rules and improve the liquidity of bonds. In addition, customers can also use market opportunities to re-subscribe for held bonds during the issuance period to better manage investment.

An official with ICBC said that CDB bond in OTC market features high credit rating and security level, low trading threshold and fixed income, with the threshold for a single bond trading and the minimum incremental unit both standing at RMB100 face value, which can meet the investment demand of the public for secure, transparent bond products with moderate income. Since the first CDB bond was sold over the counter of commercial bank in May 2014, ICBC has sold 17 issues of CDB bonds via OTC. The normalized issuance of CDB bonds via OTC reflects the increasingly important role of commercial banks in bond sales, which is of great significance to broaden financing channels for the issuer, reduce the financing cost and construct a multi-level bond market system.