By Marisa Wong
Madison, Wis., Dec. 3 – Industrial and Commercial Bank of China Ltd. announced it priced $2.94 billion, €600 million and RMB 12 billion of 6% non-cumulative, non-participating, perpetual offshore preference shares (Ba2/BB/) on Wednesday.
Proceeds will total about RMB 34.61 billion. The bank announced last month that it received approval from the China Banking Regulatory Commission to issue up to 350 million offshore preference shares for proceeds of no more than RMB 35 billion or its equivalent in foreign currencies.
ICBC, Goldman Sachs, UBS and BofA Merrill Lynch are the joint lead managers and joint bookrunners with ICBC as global coordinator.
Each tranche was priced at par. The dollar-denominated preference shares have a liquidation preference of $20 each; the euro-denominated preference shares have a liquidation preference of €15 each; and the renminbi-denominated preference shares have a liquidation preference of RMB 100 each.
Holders of the dollar-, euro- and renminbi-denominated preference shares will receive all payments in dollars, euros and renminbi, respectively.
The preferreds are not putable but are callable on the first redemption date and on any dividend payment date after that. The first redemption date is Dec. 10, 2021 for the euro preferreds and Dec. 10, 2019 for the dollar and renminbi preferreds.
The preferreds are convertible into H shares upon an additional tier 1 capital trigger event or non-viability trigger event. The initial conversion price is $0.6451, €0.4793 and RMB 3.9725, as applicable.
Proceeds will be used to replenish the bank’s additional tier 1 capital.
Settlement is slated for Dec. 10.
The bank is based in Beijing.
| Issuer: | Industrial and Commercial Bank of China Ltd.
|
| Issue: | Non-cumulative, non-participating, perpetual offshore preference shares
|
| Amount: | RMB 34,607,000,000 (approximate)
|
| Maturity: | Perpetual
|
| Dividend: | 6%, payable annually
|
| Price: | Par
|
| Conversion: | Into H shares upon an additional tier 1 capital trigger event or non-viability trigger event
|
| Call option: | On first redemption date and on any dividend payment date after that
|
| Put option: | No
|
| Bookrunners: | ICBC, Goldman Sachs, UBS and BofA Merrill Lynch
|
| Pricing date: | Dec. 3
|
| Settlement date: | Dec. 10
|
| Ratings: | Moody’s: Ba2
|
| S&P: BB
|
|
|
| Dollar-denominated preferreds
|
| Amount: | $2.94 billion
|
| Price: | Par of $20
|
| Conversion price: | $0.6451
|
| First redemption date: | Dec. 10, 2019
|
|
|
| Euro-denominated preferreds
|
| Amount: | €600 million
|
| Price: | Par of €15
|
| Conversion price: | €0.4793
|
| First redemption date: | Dec. 10, 2021
|
|
|
| Renminbi-denominated preferreds
|
| Amount: | RMB 12 billion
|
| Price: | Par of RMB 100
|
| Conversion price: | RMB 3.9725
|
| First redemption date: | Dec. 10, 2019
|
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