ICBC will issue this year’s first OTC bonds of China Development Bank (“CDB”) on January 20-22 to retail and non-financial institutional customers. The 4th CDB Financial Bond in 2016 to be issued this time is a one-year fixed-rate bond with a code of 160204 and a coupon rate of 2.29%. Customers can subscribe the bond via ICBC’s e-banking channels and outlets. The e-banking channels are available around the clock during the issuance period.

According to an ICBC official, during the insurance period of this OTC CDB bond, customers can simply subscribe the bond via Internet banking and mobile banking or via the outlets to assign the account for bond trading and open a bond custody account. For instance, after logging into the Bank’s internet banking portal, personal customers can enter the “Online Bonds” column, click the “Buy” button on the right of the bonds to be subscribed for in the “Market and Transaction” section and complete subscription as instructed. After close of the issue period, the OTC CDB bonds will become negotiable. Then customers can buy or sell the bonds at any time during trading hours via the Bank’s e-banking channels or outlets, with transaction funds settled on a real-time basis.

OTC CDB bonds feature a high credit rating and security level, with the trading threshold and the minimum incremental unit both being RMB100 in face value, which can effectively meet the investment needs of the public for safe and transparent bond products with medium returns. Since OTC CDB Bonds were issued via outlets of commercial banks in May 2014, ICBC has issued nine OTC CDB Bonds. With the increasingly important role of commercial banks in bonds distribution in the OTC bond market, the normalized issue of OTB CDB bonds signals critical significance to broadening the financing channels of issuers, lowering funding costs and building a multilayered bond market system.