On September 7, the first roadshow for the first overseas issuance of USD Bonds by Industrial Bank Co., Ltd. was staged in Shangri-la Hotel, Hong Kong Island, marking the beginning of the eight-day global roadshow.
IB’s Deputy Governor Chen Xinjian, CEO of Hong Kong Branch Xia Weichun, general manager of IB Capital Operation Center Ma Dajun and director of Asset-Liability Management Center Guan Wenyuan attended the roadshow and communicated with nearly 50 institutional and individual investors, exhibited IB’s comprehensive strength and advantage of this program, and answered questions raised by investors.
It is introduced that Moody’s has offered long-term rating of (P) Baa2 and short-term rating of (P) P-2 for this USD 5 billion medium-term notes plan. Its ratings are consistent with IB’s long-term deposit rating of Baa2 and short-term deposit rating of P-2.
The global coordinators for this issuance were four investment banks, i.e.Citibank, Standard Chartered Bank, Bank of America Merrill Lynch and BOC International. Apart from these four banks, bookrunners also included some prestigious financial institutions, such as HSBC, Goldman Sachs, Bank of Communications Hong Kong Branch, Shanghai Pudong Development Bank Hong Kong Branch, Agricultural Bank of China Hong Kong Branch and China Construction Bank (Asia). After issuance, bonds would be listed in Hong Kong Stock Exchange.
As the “Belt and Road” Initiative was carried out, enterprises are presented with unprecedented historic opportunities to “go out” and their needs for relevant financial services are expanded, covering all-around financial services, like cross-border settlement of commercial banks, investments and financing and asset allocation. As bonds of Chinese enterprises are recognized by more foreign investors and the demand increases, financial institutions in China also gradually expand issuance of overseas bonds. Investment-grade bonds issued overseas by Chinese-funded banks are widely recognized by foreign banks, insurance, funds and other financial institutions. The roadshow team revealed that the underwriting group has received a number of intent inquiries from investors.
IB said that issuing overseas bonds helps broaden financing channels for the bank’s overseas institutions and supplement medium and long-term fund. All funds raised through the issuance of USD bonds will be used to support the bank’s overseas business development, promote balanced development of the overseas assets liabilities business, accelerate international layout, enhance the ability to allocate global resources, and further strengthen its core competitiveness.
according to IB’s 2016 Semiannual Report, as of June 30, 2016, its total assets has ranked first among stock-holding commercial banks in China with RMB 5.71 trillion, up by 7.75% over the beginning of this year.
After the first roadshow in Hong Kong, IB’s team will head for Singapore and London to proceed with the following roadshows.