News summary
On May 15, Industrial and Commercial Bank of China successfully issued the first domestic order of 40 billion yuan of TLAC non-capital bonds, including 30 billion yuan of 3+1-year bonds, with an interest rate of 2JungleJubilee.25%, and 10 billion yuan of 5+1-year bonds with an interest rate of 2.35%, are designed to meet regulatory requirements and strengthen the robustness of the financial system.
Newsletter text
[Industrial and Commercial Bank of China successfully issued its first TLAC non-capital bond in the inter-bank market, with an issuance scale of 40 billion yuan] Industrial and Commercial Bank of China successfully issued 40 billion yuan of TLAC non-capital bonds on May 15, including a 3+1-year issuance scale. It is 30 billion yuan, with an interest rate set at 2.25%; while the 5+1-year issuance scale is 10 billion yuan, with an issue interest rate of 2.35%. the issuance isJungleJubileeThe debut of my country's TLAC non-capital bonds marks an important step for ICBC, as one of the world's systemically important banks, to meet TLAC regulatory standards and strengthen risk resilience. It has a positive effect on maintaining the stable operation of my country's financial system. In order to ensure the issuance of TLAC non-capital bonds, ICBC has conducted in-depth discussions with major market participants such as banks, insurance, funds, securities firms, rating agencies, and custodians in the early stage, and discussed the background and bond terms of TLAC non-capital bonds. Consensus was reached in terms of terms, issuance plan, tool characteristics, etc. This move not only received positive feedback from the market, but also laid a solid foundation for subsequent TLAC non-capital bond issuance. TLAC non-capital bonds, as a financial bond with loss-absorbing functions, help global systemically important banks meet regulatory requirements. This issuance not only broadens the TLAC compliance channels for my country's global systemically important banks, but also achieves innovations in accounting treatment, issuance period, debt rating, value valuation, etc. Market participants generally believe that as the TLAC compliance process progresses, the construction of the capital market will accelerate, TLAC non-capital bonds are expected to become mainstream financial products, and the continued improvement of the stability of the banking industry will be more conducive to serving the real economy.
