ICBC will launch the global road show and book-building for issuance in the near term, after the China Securities Regulatory Commission (CSRC) approved it to issue 350 million shares of overseas preferred stocks with the face value at RMB100 per share. The issuance will raise funds of about RMB35 billion. After deducting issue expenses, it will use the proceeds to replenish other tier-1 capital.

It is the first time that a Chinese bank has issued new-type capital tools meeting Basle Accord III standards overseas by three currencies including USD, EUR and RMB. Meanwhile, the issuance creatively includes overseas RMB. As the terms adopt the 14A rules and S articles of Securities Law of the USA, global investors, including investors in the USA can also buy the Bank''s preferred stocks. Industry insiders said that given the above characteristics and the Bank''s advantage of "BBB + Standard & Poor''s independent rating" over other Chinese banks, the issuance is expected to become popular with global investors.

Relevant head of ICBC said that the Bank''s selection of issuing preferred stocks overseas this time has two considerations. On the one hand, it can better take advantage of the domestic and overseas markets and currencies to avoid the complete concentration of subscribed funds from the domestic capital market. On the other hand, the global issuance will play an important role in helping investors in the overseas capital market further become familiar with Chinese banks. In addition, as the first bank in the world to issue RMB preferred stocks overseas, the issuance can help the Bank enrich its offshore RMB investment products.