ICBC will help issue this year’s fourth OTC bonds of China Development Bank (“CDB”) between July 6 and July 8 to individuals and non-financial institutions. With the code of 160212, the 12th-tranche CDB Financial Bond in 2016 is a one-year fixed-rate interest-bearing bond, with a coupon rate of 2.35%. 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. ICBC has successfully issued three OTC CDB Bonds as an agent from the year to date, respectively in January, March and May.

According to an official with ICBC, ICBC is the only commercial bank in the market providing 24-hour non-stop OTC bond issue service, allowing customers to subscribe the bond via above-mentioned channels during business hours and via Internet banking and mobile banking during non-business hours. For instance, after logging into the Bank’s internet banking terminal, personal customers can enter the “Online Bonds” column, click the “Buy” button on the right of the bond to be subscribed in the “Market and Transaction” section and complete subscription by following instructions. The OTC CDB bonds will become negotiable upon close of the issuance period, when 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 at RMB 100 in face value. Customers can gain stable interest income from the matured bonds, or leverage price fluctuation in the market to earn profit, which can effectively meet investment needs for safe and transparent bond products with moderate returns. ICBC has issued 12 OTC CDB Bonds since initially issued via outlets of commercial banks in May 2014. As the issue of OTB CDB bonds becomes normalized, commercial banks play an increasingly important role in bonds distribution in the OTC bond market, which carries strong implications in broadening the financing channels for issuers, lowering funding costs and building a multilayered bond market system.