Banking

ICBC to raise 25b yuan in convertible bonds

(Xinhua)
Updated: 2010-08-26 17:13

BEIJING -?Industrial and Commercial Bank of China (ICBC) said Thursday it is to issue 25 billion yuan ($3.68 billion) of convertible bonds next Tuesday.

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The bonds convertible into yuan-denominated Shanghai-listed A shares will be six years in term from August 31, 2010 to August 31, 2016, said a statement by the ICBC to the Shanghai Stock Exchange.

The bonds are priced 4.2 yuan per share and the interests rate will be 0.5 percent in the first year, 0.7 percent in the second year, 0.9 percent in the third year, 1.1 percent in the fourth year, 1.4 percent in the fifth year and 1.8 percent in the sixth year.

The funds will be used to reinforce the lender's capital, the statement said.

The bank's capital adequacy ratio (CAR) was 11.98 percent by the end of the first quarter and the core CAR was 9.58 percent.

The lender's shares opened slightly up Thursday at 4.09 yuan per share in Shanghai.