Announcement Regarding the Successful Issuance of Subordinate Bonds
The Industrial Bank Co., Ltd (the Company) and all members of the Board of Directors hereby warrant that the information contained in this announcement is true, accurate and complete, and assume joint and several liabilities for any false representation, misleading statement or material omission.
Upon the approval of the China Banking Regulatory Commission and the People’s Bank of China, the Industrial Bank Co., Ltd. successfully issued subordinate bonds of RMB10 billion in the national inter-bank bond market from September 9-11, 2009.
Details on the issuance of bonds are as follows:
09 IB 01 (5 + 5 Fixed Interest): Total actual issuance of RMB2.005 billion; 4.30% coupon rate for the first five years; the issuer has the right to redeem the bonds at the end of the 5th year.
09 IB 02 (10 + 5 Fixed Interest): Total actual issuance of RMB7.995 billion; 5.17% coupon rate for the first five years; the issuer has the right to redeem the bonds at the end of the 10th year.
In the event that the issuer does not exercise its right to redeem the bonds, as in the case of 09 IB 01, the coupon rate for the 5 year period starting from the beginning of the sixth year and ending with the maturity of the bond will have a 3% markup over the initial coupon rate at the time of issue.
In the event that the issuer does not exercise its right to redeem the bonds, as in the case of 09 IB 02, the coupon rate for the 5 year period starting from the beginning of the eleventh year and ending with the maturity of the bond will have a 3% markup over the initial coupon rate at the time of issue.
In accordance with the relevant laws and the approval given by the regulatory authorities, the funds raised from the issue of these subordinate bonds will be used to improve the capital basis of the Company by supplementing supplementary capital and increasing the capital adequacy ratio. This will enhance the capacity of the Company to operate soundly and counter risks whilst at the same time underpinning the continued growth of its operations.
Board of Directors
Industrial Bank Co., Ltd
September 15, 2009