Quantcast

ICBC Singapore prices US$2.2bn-equivalent three-currency Green 'Silk Road' bond


Reuters


By Frances Yoon

HONG KONG, April 17 (IFR) - Industrial and Commercial Bank of China, acting through its Singapore branch, has issued a US$2.2bn-equivalent Green 'Silk Road' bond offering in three currencies, one week after Bank of China's similar exercise.

The state-owned lender sold US$900m three-year and US$600m five-year floating-rate notes priced at three-month Libor plus 72bp and 83bp, respectively, inside initial indications of Libor plus 95bp area and 105bp area.

A Rmb1bn (US$149m) three-year Dim Sum note priced at par to yield 3.3%, inside initial indications of 3.6% area.

The three-year US dollar notes attracted over US$2.4bn in orders, including those from the joint lead managers. Asia bought 92% of the deal and EMEA the rest. By investor type, banks bought 47%, public sector investors accounted for 48% and the rest went to fund managers, corporates and private banks.

The 2024s drew over US$1.5bn in orders, including those from the joint leads. The geographic breakdown was the same as the 2022s, but banks bought 85% of notes, fund managers 14% and private banks 1%.

The euro tranche drew orders of over €1.8bn, excluding those from the joint lead managers. Asia bought 58% and the rest went to EMEA. By investor type, SSAs and central banks bought 40%, asset and fund managers 26%, banks 25%, pensions and insurers 7% and the rest went to private banks and other investors.

Credit Agricole and HSBC are joint green structuring advisers on the Reg S issue. The notes have expected ratings of A1/A (Moody's/S&P).

ICBC, Credit Agricole, DBS Bank, HSBC and Standard Chartered Bank were joint global coordinators on the dollar tranches. They were also joint bookrunners and joint lead managers with Agricultural Bank of China, Bank of China, Bank of Communications, Cathay United Bank, CCB Singapore, China Minsheng Banking Corp Hong Kong branch, China Everbright Bank Hong Kong branch, Citigroup, CTBC Bank, Emirates NBD Capital, First Abu Dhabi Bank, ING, Maybank, Mizuho Securities, OCBC Bank and SMBC Nikko.

ICBC, Credit Agricole and HSBC were joint global coordinators on the euro tranche. They were also joint bookrunners and joint lead managers with Bank of China, Bank of Communications, China Everbright Bank Hong Kong branch, Citigroup, ING, OCBC Bank, Mizuho Securities and Standard Chartered.

ICBC, DBS Bank, Mizuho Securities and Standard Chartered Bank were joint global coordinators on the Dim Sum bond tranche. They were also joint bookrunners and joint lead managers with Bank of Communications, China Everbright Bank Hong Kong branch, Citigroup, Credit Agricole, CTBC Bank, HSBC and E.Sun Bank.

ICBC intends the notes to be the first 'Belt and Road Inter-bank Regular Cooperation Bonds' to be issued under the Belt and Road Inter-bank Regular Cooperation Mechanism, which was established during the first Belt and Road Forum for International Cooperation in May 2017.

Proceeds from the offering will be used to finance and/or refinance eligible green assets, such as renewable energy, low carbon and low emission transport, energy efficiency, and sustainable water and waste water management, along the Belt and Road countries and regions.

Peer Bank of China, rated A1/A/A, last week raised US$3.8bn-equivalent across five currencies and eight tranches from its fifth 'Silk Road' bond offering.






This article appears in: Stocks , Banking and Loans , Bonds




More from Reuters

Subscribe






See Reuters News













Research Brokers before you trade

Want to trade FX?