China’s ICBC calls convertibles at 100.629 due to stock price trigger

By Susanna Moon

Chicago, Jan. 26 – Industrial and Commercial Bank of China Ltd. said it will redeem its convertible bonds after the stock price triggered the call option.

The bank will redeem the bonds at RMB 100.629 per bond, with a redemption payment date of Feb. 26, according to a company notice. The record date is Feb. 12.

The bank said on Dec. 30 that it is planning an early redemption of its convertible bonds.

As previously announced, the redemption clause of the bonds was triggered because the closing prices of the company’s A shares from Nov. 19 to Dec. 30 were at least 130% of the conversion price for at least 15 out of 30 consecutive trading days.

The conversion price is RMB 3.27 per share.

The redemption is subject to China Banking Regulatory Commission approval.

The Beijing bank issued RMB 25 billion of the six-year convertible bonds in August 2010.

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