Beijing, 4 March 2019 –China CITIC Bank Co., Ltd. (hereinafter referred to as “CITIC Bank”), rated by Dagong Global Credit Rating Co., Ltd. (hereinafter referred to as “Dagong”), successfully issued 40 billion yuan convertible bonds. Dagong assigned the convertible bonds credit rating of CITIC Bank at AAA, the bond is referred to as “CITIC Convertible Bond” with bond code “113021”. The issuance is up to 40 billion yuan, which will due in 6 years. The coupon rate is 0.3% in the first year, 0.8%, 1.5%, 2.3%, 3.2% and 4.0% respectively in the following five years, and the initial conversion price is 7.45 yuan/share. The proceeds from the issuance of convertible bonds will be used to support the ongoing operations. The convertible bonds is issued for its core tier 1 capital replenishment according to relevant regulatory requirements.
The CITIC Bank convertible bond is the second convertible bond project issued by the listed banks following the issuance of 26 billion yuan convertible bonds by Ping An Bank in January this year. It is also the largest convertible bond issued by A shares since 2011. In addition, the amount of valid subscriptions offline totaled 56.96 trillion yuan and the valid subscription multiple was 5,497 times, setting a record for the highest A-share subscription. The issuance of convertible bonds will help CITIC Bank's capital replenishment, enhance risk management and core competitiveness, to achieve sound business and financial performance.
Dagong believes that CITIC Bank's wealth creation ability is strongly supported by the steady development and strong market competitiveness of its financial business, as its business scale is in the forefront of joint-stock commercial banks. Meanwhile, CITIC Bank actively promotes strategic transformation of retail banking, adding new profit growth points. Moreover, CITIC Bank strengthened its cooperation with CITIC Group's subsidiaries and formed synergies in business development, which provides strong support for the construction of the best integrated financial services company.
(Edited by: Ding Xinyi, Finance Department)