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ICBC Underwrites the First Credit Bond under Bond Connect

17 China Unicom SCP004BC (Bond Connect) and 17 China Huaneng Group SCP002BC (Bond Connect), worth RMB1 billion and RMB 2 billion respectively, were successfully issued with ICBC as the lead manager and book runner, becoming the first non-financial corporate debt financing instruments issued after the official launch of Bond Connect on July 3.

An ICBC official said that in issuing the first non-financial corporate debt financing instruments under Bond Connect, thanks to its extensive experience in bond underwriting and internationalized operation, the Bank efficiently completed a series of work including issuance document preparation, terms design, information disclosure and overseas investor investigation under the arrangement and guidance of the National Association of Financial Market Institutional Investors. The two Bond Connect products have been closely watched by domestic and overseas investors, turning out 3.3 times and 2.35 times over-subscribed respectively during the final issuance.

Bond Connect refers to a mechanism arrangement linking infrastructure institutions of mainland China and Hong Kong bond markets, by which domestic and foreign investors can trade negotiable bonds on both markets. Bond Connect is initially Northbound, where overseas investors in Hong Kong and other countries and territories (“overseas investors”) can invest in mainland China’s interbank bond market via mutual access in trading, custody and settlement between infrastructure institutions of Hong Kong and mainland China. Bond Connect is a significant initiative to further open up China’s interbank bond market, which is conducive for China’s financial market to speed up opening up and for Hong Kong to further consolidate its position as an international financial center.