ICBC issued the third OTC bonds of China Development Bank (“CDB”) this year on May 4-6 to individual and non-financial institutional customers. The bonds, the 11th CDB Financial Bonds in 2016, are one-year fixed-rate bonds with a code of 160211 and a coupon rate of 2.55%. Customers can subscribe via ICBC’s e-banking channels (around the clock) and outlets.

According to an ICBC official, during the insurance period customers can conveniently subscribe via Internet banking and mobile banking or via the outlets to assign the account for bond trading and open a bond custody account. For example, after logging into the online banking portal, individual customers can enter the “Online Bonds” column, click the “Buy” button on the right of the bonds to be subscribed in the “Market and Transaction” section and complete subscription following instructions. After the issuance period, the OTC CDB bonds will become negotiable. Then customers can buy or sell them at any time during business hours via the e-banking channels or outlets, 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 standing at RMB 100 (face value), which may effectively meet the investment needs of the public for safe and transparent bond products with moderate returns. Since OTC CDB Bonds were issued via outlets of commercial banks in May 2014, ICBC has issued 11 OTC CDB Bonds. With commercial banks’ OTC bond issuance becoming an increasingly important distribution channel, the issuance of OTB CDB bonds has been normalized, which plays a positive role in widening the financing channels of issuers, lowering funding costs and building a multilayered bond market system.