"Redeem the old sell new" ICBC Friday issued 22 billion levels of debt

For cost-saving reasons, ICBC (hereinafter referred to as "ICBC") has opted for a strategy to honour its old debt issue.　　According to the announcement, ICBC will issue 22 billion yuan of subordinated bonds in the interbank bond market from September 10 to 14th to supplement its subsidiary capital. The 22 billion-yuan subordinated debt is divided into 2 varieties: 7 billion-yuan 10-year fixed-rate variety (with the precondition of the issuer's redemption at the end of the 5th), 15 billion yuan 15-year fixed-rate variety (with the prerequisite issuer's redemption at the end of the 10th).　　The annual coupon rate will be determined by the way of bookkeeping and centralized placement, using simple.　　According to the results of the credit rating, this issue is rated AAA grade and the issuer is rated AAA.　　On the face of it, the debt-raising fund is used to supplement the subsidiary capital, but the underlying reason is that it lowers the cost of the issue and uses the new debt for the 22 billion-yuan subprime debt issued in 2005. ICBC issued a 35 billion-yuan subprime mortgage in August or September 2005, according to historical documents published in the China Bond Information Network.　　Under the current distribution, 10-and 15-year fixed-term bonds if no redemption is exercised, the nominal interest rate in the latter 5 interest-bearing years shall be the interest rate set at the original tender and 3% for the 10-year float, and if no redemption is exercised, the underlying interest difference for the latter 5 interest-bearing year is the difference plus 1% as determined by the original tender.　　Clearly, for ICBC, the way to save the cost of issuing debt is to exercise the right to redeem and then issue a new subordinated debt after cashing the bonds. August 16, ICBC issued a statement of honour that will honour the 10-year fixed-term debt and 10-year floating dividend subordinated debt. According to the notice of honour, the date of expiry of the 13 billion-dollar fixed-interest subordinated debt is August 29; The 9 billion-dollar floating interest debt maturity date is September 14, the two equals 22 billion yuan. This figure is consistent with the total size of the ICBC issue of subordinated debt.