I. Introduction:
Commercial bank subordinated debt are bonds issued by commercial banks. Liquidation of principal and interest is behind the other liabilities and before the equity capital of the commercial banks.

II. Target Clients:
Commercial banks in China established under law and meet the following conditions:
1. A system of loan classification into 5-class, small variation in the classification
2. Core capital adequacy ratio of at least 5%
3. Sufficient allowance for impairment losses on loans
4. Good corporate governance structure and mechanism
5. No material default and violation in latest three years
6. Other conditions stipulated by the People's Bank of China

Note: Above conditions must be met before public offering. Conditions for private placement are the same as above except the core capital adequacy ratio must be minimum 4%.

III. Features and Advantages:
Commercial bank subordinated debt are mainly to supplement the asset adequacy ratio.

In recent years, ICBC has successfully underwritten RMB 6 billion of subordinated debt for Shanghai Pudong Development Bank. Meanwhile, ICBC underwrote RMB 1.5 billion and RMB 1 billion of subordinated debt for Shenzhen Development Bank and Hangzhou Bank respectively in 2008.

IV. Service Channels and Hours:
If necessary, corporate clients are welcomed to contact the Underwriting Section of ICBC Global Market Department for details. Our staff will guide through the necessary steps. 

Contact: Wang Hua, Yang Fan
Tel: 010-66107769、66107442

V. Statement:
Information herein is for reference only. Industrial and Commercial Bank of China Limited reserves the final right of interpretation. Refer to the announcements and regulations of local branches for further details.