OREANDA-NEWS. October 02, 2014. ICBC is scheduled to offer the 23rd tranche of financial bonds of China Development Bank for 2014 ("OTC CDB Bonds") to individual customers and non-financial institutions.

The bonds on sale this time are 1-year fixed-rate bonds with a coupon rate of 4.19%, and can be subscribed via internet banking, mobile banking and outlets of ICBC.

According to an ICBC official, since the People's Bank of China announced the introduction of OTC CDB bonds, financial bonds of policy banks, government-backed institutional bonds of China Railway Corporation, and other new products on March 28, 2014, the Bank has taken the lead in experimentation and implementation by selling three tranches of OTC CDB bonds and OTC Export-Import Bank bonds, all of which were well received by investors.

Among them, the first tranche of CDB bonds was a fixed-rate product and sold out within two days. OTC CDB bonds feature high security, good returns, strong liquidity, low investment and trading threshold, higher returns than savings deposits, and better liquidity than ordinary wealth management products, with investment and trading threshold and minimum incremental unit both at RMB100; therefore, they have become new investment options for clients seeking steady returns. Furthermore, the CDB Bonds will be listed for trading from September 17. Then ICBC will provide two-way market making services so that customers can gain from bid-ask spreads by seizing favorable opportunities in price fluctuations in the market.

Customers can log on to ICBC's internet banking, mobile banking or go to its outlets, designate a capital account for bond trading, and open a bond custody account to subscribe for the OTC CDB Bonds during the issue period. For instance, for personal internet banking customers to subscribe for the bonds, they need to log on to the internet banking interface, enter the "Online Bonds" column, choose "CDB 23rd Financial Bonds for 2014" in the "Market and Trading" section, click "Buy" and complete subscription operations as instructed. The CDB Bonds will become negotiable upon closing of the issue period. Customers can also buy or sell the bonds at any time during trading hours via ICBC's internet banking, mobile banking or at its outlets, with trading funds cleared on a real time basis.