By Angela McDaniels
Tacoma, Wash., July 22 - Industrial and Commercial Bank of China Ltd. issued RMB 40 billion of subordinated bonds, according to a notice from the bank.
The bonds were issued in three tranches:
• RMB 10.5 billion of 10-year bonds were issued in tranche 1. They carry a fixed coupon of 3.28% for the first five years;
• RMB 24 billion of 15-year bonds were issued in tranche 2. They carry a fixed coupon of 4% for the first 10 years;
• RMB 5.5 billion of 10-year bonds were issued in tranche 3. They carry a floating coupon equal to the one-year lump-sum deposit and withdrawal time deposit rate published by the People's Bank of China plus a margin that is 58 basis points for the first five years.
The tranche 1 and tranche 3 bonds are callable after five years, and the tranche 2 bonds are callable after 10 years.
If the bonds are not called, the coupon or margin, as applicable, will increase by 300 bps.
The bonds were issued in the Chinese national inter-bank bond market on July 16 through July 20.
The proceeds will be used to replenish the Beijing-based bank's subordinated capital.
| Issuer: | Industrial and Commercial Bank of China Ltd.
|
| Issue: | Subordinated bonds
|
| Amount: | RMB 40 billion
|
| Settlement dates: | July 16-July 20
|
|
|
| Tranche 1
|
| Amount: | RMB 10.5 billion
|
| Maturity: | 2019
|
| Coupon: | 3.28% for first five years, then 6.28%
|
| Price: | Par
|
| Call option: | After five years
|
|
|
| Tranche 2
|
| Amount: | RMB 24 billion
|
| Maturity: | 2024
|
| Coupon: | 4% for first 10 years, then 7%
|
| Price: | Par
|
| Call option: | After 10 years
|
|
|
| Tranche 3
|
| Amount: | RMB 5.5 billion
|
| Maturity: | 2019
|
| Coupon: | One-year lump-sum deposit and withdrawal time deposit rate published by the People's Bank of China plus 58 bps; margin increases to 358 bps after five years
|
| Price: | Par
|
| Call option: | After five years
|
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