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China : ICBC Kicks off EIBC OTC Bond Sales

June 26, 2014



The policy financial bond of the Export-Import Bank of China ("EIBC Bonds") has been issued through ICBC to retail and non-financial institutional customers starting from 10 a.m. on June 17. The issue interest rate of the EIBC Bonds was determined through tendering in the interbank bond market. The coupon rate of the two-year fixed-rate bond is 4.45%; while the issue price of the one-year discount bond is RMB 96.03/par value (RMB 100), with an annualized return rate of 4.13%, respectively 70 BPs and 113 BPs higher than the base interest rates of two-year and one-year time deposit.

EIBC, the issuer of the bonds, has the same international credit rating as the sovereign rating for China. The sales floors for the two portions of the bond are both RMB 100. Besides featuring high credit rating and stable return, the bond has good liquidity. When the issue is closed on June 20, the bond will become tradable on June 27 and June 25 respectively. Investors can subscribe for and trade the bond through e-banking channels and outlets of ICBC.

According to an executive with ICBC, customers can subscribe for the EIBC Bond by logging on to ICBC internet banking or mobile banking, using telephone banking or going to outlets, designating a capital account for bond transactions, and opening a bond custody account. Personal internet banking customers, after logging on to ICBC internet banking, may enter the "Online Bonds" column, click the "Buy" button on the right of the bonds to be subscribed under the "Market and Trading" section, and continue operations as instructed to complete the subscription.


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Source: TendersInfo (India)


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