Underwriting of Commercial Bank Hybrid Capital Bond
Introduction These are bonds issued by commercial banks. Liquidation of principal and interest is behind the subordinated debt and before the equity capital of the commercial banks.
Commercial bank hybrid capital bonds are one kind of financial bonds. Offering period and type of bond can be flexibly designed according to the financing needs of issuers.
Target Clients Commercial banks established in China (excluding Hong Kong, Macau and Taiwan) need to raise capital.
Functions and Features Hybrid capital bonds fill the gap left behind by the supplementary capital (existing subordinated debt and general provisions) to meet 100% core capital. Issuance of hybrid capital bonds increases the ratio of supplementary capital as required by regulatory authority in order to better guard against risks.
ICBC Advantages 1. Strong underwriting: ICBC is a Class A bond underwriting member under the Ministry of Finance, Class I trader of People's Bank of China's open market, the earliest commercial bank in China to be qualified for the underwriting of non-financial corporate debt instruments. For years ICBC has been named excellent underwriter and excellent trader by the Ministry of Finance and People's Bank of China. 2. Rich experience: ICBC has a team of professional staff experienced in bond underwriting, and a comprehensive, effective internal mechanism in place for customer service, credit risk assessment and underwriting execution. 3. Good relationship: ICBC maintains good contact with regulatory authority and good relationship with the investors. ICBC is able to underwrite the financial bonds issued by commercial banks.
Product Price Offering interest rates for the financial bonds issued by commercial banks depend on the term, credit rating of the customers, referencing market price and opinions of regulatory authority.
Service Channel and Hours Commercial banks are welcomed to contact ICBC directly during office hours, based on own financial requirements.
Steps 1. Verify: Customers must supply application documentation to ICBC required by the regulatory authority. ICBC will proceed due diligence, assess credit risk and sign relevant agreements with customers. 2. Approval: ICBC sends the application documentation to China Banking Regulatory Commission and People’s Bank of China for approval. 3. Issuance: Once approved by China Banking Regulatory Commission, ICBC will proceed to issue the bonds.