(Yicai Global) Sept. 17 -- The London branch of Industrial and Commercial Bank of China, the largest bank in the world by assets, has issued GBP600 million (USD754 million) worth of sterling bonds to become the first Chinese lender to raise funds in the British currency.
The branch finished pricing the bills on July 24 and issued them yesterday to raise money for projects in the United Kingdom, Xinhua reported. The three-year bonds will expire on July 31, 2022 and pay 1.5 percent interest. They will go on sale via the London Stock Exchange.
Issuing the bonds is a step toward ICBC becoming a sustainable bond issuer in the international capital market, Xinhua cited Han Ruixiang, general manager of the London branch, as saying at a ceremony celebrating the event. It also builds foundations for financial cooperation between China and the UK, he added.
British investors are expected to make up half of all investors in the bonds and are excited to purchase the bills, which have also attracted the attention of international investors who want to buy Chinese bonds for the first time, the report added. Asset managers and retail funds will likely make up half of buyers, while central banks and sovereign funds are expected to make up more than 40 percent.
Editor: James Boynton