Industrial Bank Launches First 10bn Convertible Bond Fund
China’s Industrial Bank Co. executed an agreement on 5 April for its largest ever bond conversion fund.
Industrial Bank executed the Bond Share Conversion Fund Conversion Cooperative Agreement (债转股基金合作框架协议) with the Angang Group in Beijing, which outlines the intention of both parties to cooperate on a 10 billion yuan bond conversion fund.
The fund raising sum for the initial period is five billion yuan, and the term is 10 years.
“The development of bond conversion fund cooperation is of benefit to improving the financing capability of of banks, reducing asset/liability rates, achieving overall improvement to internal finances, and thus optimising the financial environment,” said Tao Yiping, head of Industrial Bank.
According to data from the China Banking Regulatory Commission (CBRC) as of the start of February over 430 billion yuan in agreements for market-based bond conversions had been executed in China, of which more than 40 billion yuan had been implemented.