Replacement of maturing bonds ICBC Friday or issued 22 billion times debt

It is reported that ICBC Friday (September 10) will issue 22 billion yuan of subprime bonds to enrich the company's capital base. ICBC's bond issue consists of two parts: 10-and 15-year, the source said, citing unnamed insiders.　　At the same time, Citic Securities, CICC and Credit Suisse founder Securities will be the main underwriter of the issue.　　"Daily economic news" reporters on the issue of the issuance of debt to the bank spokesman to verify that the relevant people said they did not know. The issue of subordinated debt is according to the joint principal underwriter who has been involved in ICBC's a-share convertible bond issue, an analyst told reporters that ICBC's capital adequacy ratio fell by nearly 0.5% per cent from the end of last year, and itself had the need to refinance through the issue of subordinated debt.　　More importantly, the subprime bonds that were issued in 2005 have expired, and ICBC is likely to take over overdue bonds to ensure a relative increase in the bank's affiliated capital. In short, the alleged 22 billion-tier debt is justified. In an interview with the Daily Economic news reporter, the analyst said, "If you do not issue subordinated debt, it equals the relative reduction of subordinated capital, and the issue of subordinated debt is a way of keeping the bank's capital adequacy rate from falling." He noted that of the 35 billion subprime loans issued in August 2005, 22 billion of the bonds gave issuers the option of redemption at the end of the fifth (August 29, 2010).　　If the subordinated debt is issued in Friday, it confirms that it is used to replace the 2005 issue, which expires in August this year.　　If it is not a simple replacement for the expired bonds, but a separate 22 billion-tier debt, the reporter estimates the value of 6.6985 trillion of the weighted risk assets disclosed in the semi-annual report, and increases the capital adequacy ratio by nearly 0.33%. It is noteworthy that ICBC at the October 2008 general Meeting of shareholders approved a bill to issue no more than 100 billion yuan of subprime debt by the end of 2011, the bank has issued a 40 billion-yuan subordinated debt last year.　　Recently, ICBC launched a 25 billion-yuan a-share convertible bonds issued, the proceeds will be used to replenish capital, at the same time, the Bank also strive to complete the total amount of up to 45 billion yuan a+h rights issue financing. Stabilize the capital adequacy ratio in fact, as early as the early July, the rumors were heard.　　The reporter learned that, as ICBC's assets continued to grow, the scale of risky assets also expanded, the capital adequacy ratio has declined correspondingly.　　As at the end of June 2010, ICBC's capital adequacy ratio was 11.34%, and the core capital adequacy ratio was 9.41%, down 0.49% and 1.02% respectively from the end of 2009, and there was still a gap between the CBRC and the 11.5% new capital adequacy regulation requirements of the large banks. The analyst said that since the level of capital adequacy of ICBC is not higher than the requirements of the regulatory level, there is still a gap between the new regulatory requirements for capital adequacy, the issue of subordinated debt is supplementary capital, and its capital adequacy ratio target of at least 12%, noWill be "to touch the regulatory red line, the impact of loans and other business development." In April this year, ICBC's "Capital plan for the 2010 to 2012" issued by HKEx showed that the bank planned to maintain the capital adequacy rate at around 12.4% per cent in the year, and that the capital adequacy ratio would remain at around 12.3% per cent in the coming years;　　The core capital adequacy ratio remains at around 10.1% in the year after tomorrow. The main principles of the plan are to ensure compliance with regulatory requirements, capital adequacy management objectives set by financial planning should not be lower than regulatory and regulatory policy requirements, and maintain a certain margin of safety and buffer between to prevent the accident caused by the reduction of capital adequacy rate to regulatory policy requirements　　To reach the level of international consensus and maintain the basic stability of the capital adequacy ratio. According to the analysis point of view, due to the 2009 to prevent the systemic risk of the banking sector, the regulation of secondary debt issuance and mutual holding of a strict regulation, so that the commercial banks of the secondary debt issue demand is insufficient, financing costs rise.　　However, the issue of subordinated debt is a relatively easy refinancing measure. In fact, there is a limit to the increase in ancillary capital.　　The measures for the management of capital adequacy ratio of commercial banks stipulate that the subsidiary capital of commercial banks shall not exceed 100% of the core capital, and that the long-term subordinated debt of the subsidiary capital shall not exceed 50% of the core capital. Wu Yonggang, Guotai banking analyst, said in an interview with the Daily economic news that the A+H share rights financing complements the core capital of the bank and opens up space for the increase of the subsidiary capital as core capital increases, which can increase the distribution of subordinated debt.