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ICBC Will Sell CDB Green Finance Bonds as of July 30
 

From July 30 to August 5 (excluding non-business days), Industrial and Commercial Bank of China (ICBC) will for the first time distribute the “Climate Change Response” green finance bonds issued by China Development Bank (CDB) (hereinafter referred to as “the Bonds”) to individual and corporate customers in the over-the-counter (OTC) market. The raised funds will be used to finance green projects such as low-carbon transportation projects.

It is reported that the Bonds will be the first batch of interest rate bonds that have obtained certification under the Climate Bonds Standards in China, as well as the first bond simultaneously issued in the interbank market, exchange market, and commercial bank OTC market of China, and simultaneously distributed at home and abroad on a trial basis. The full name of the Bonds is the First Tranche of CDB Green Finance Bond in 2019. The Bonds are reissued three-year fixed-rate coupon bonds, with bond code of 1902001 and coupon rate at 3.10%. The reissued price and the reference yield to maturity corresponding to the reissued price will be determined by bid inviting in the interbank market on July 29. individual and corporate customers can buy the Bonds through ICBC e-banking channels and domestic business outlets. The e-banking channels provide around-the-clock services on every business day of the issuing period. Furthermore, ICBC and CDB will co-grant commemorative certificates to the individual and corporate investors who have subscribed the Bonds and gone through related information registration.

It is known that in addition to such advantages shared by regular OTC bonds as high security, impressive yield, great liquidity, and low threshold for investment/trading, the Bonds also embody the principles underpinning green bonds, social bonds, and climate bonds, thus bearing great significance for making green finance more influential in the Chinese society.

Since the sales of the first OTC CDB bonds in May 2014, ICBC has been distributing the bonds on a regular basis. To date, it has managed to sell four tranches of green finance bonds issued by CDB. As the lead underwriter of the Bonds and an undertaking bank of OTC bond business, ICBC will not only take an active part in investment and domestic distribution of the Bonds, but also fully leverage on its advantages on international network. As mobilized by the Head Office, many overseas branches and institutions such as ICBC (Europe), Dubai (DIFC) Branch, ICBC (Asia), and Singapore Branch will serve as cross-border coordinators to sell the Bonds overseas through the direct investment channel available in the interbank market and the Bond Connect channel, with a view to attract the participation of foreign investors in the development of Chinese green finance, and to boost the opening-up of the Chinese interbank bond market to the public.


(2020-08-11)
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