ICBC offered two financial bonds of China Development Bank (“CDB”) simultaneously to individual and non-financial institution customers from January 24 to January 26, including CDB Bond 2018 01 (newly issued) and CDB Bond 2017 09 (second rolling-over over the counter).

It is reported that CDB Bond 2018 01 issued over the counter is a one-year fixed-rate and interest-bearing bond with a bond code of 180201, a par value of RMB100 and a coupon rate of 4.14%. Meanwhile, CDB Bond 2017 09 rolled over for the second time over the counter is a three-year fixed-rate and interest-bearing bond with a bond code of 170209 and a par value of RMB100. Its value date, payment arrangement, coupon rate, transaction and custody methods are the same as those of CDB bonds previously issued in the same period. The coupon rate is 4.14%, the rolling-over price is RMB100.06/RMB100 par value, and the yield-to-maturity for reference for rolling-over price is 4.7655%. The customer can subscribe for the two bonds via ICBC’s e-banking channels and outlets, among which e-banking channels support around-the-clock trading during the issuance.

According to an ICBC official, the introduction of rolling-over for counter-based CDB bonds will make the counter-based offer closer to interbank issue rules, and enhance the liquidity of bonds. Customers can seize the market opportunity to subscribe for the bonds already held during the rolling-over, and actively manage their investments. Since CDB bonds were issued via outlets of commercial banks in May 2014 for the first time, ICBC has distributed 30 tranches of OTC CDB bonds on a regular basis. The regular issuance and roll-over of OTC CDB bonds indicate that the OTC bond market of commercial banks is playing an increasingly important role in bond distribution channels, which carries profound implications on expanding the issuer’s financing channels, reducing financing cost and building a multi-tier bond market system.