ICBC Obtains Approval for 190B Yuan in Tier-2 Capital Bonds


China and the world’s biggest bank in terms of assets has just obtained approval for a mammoth quota in tier-2 capital bond issuance.

The Industrial and Commercial Bank of China (ICBC) announced on 6 December that it had obtained approval from the national interbank bond market to issue up to 190 billion yuan in tier-2 capital bonds, in order to further shore up its capital standing.

ICBC said that as of the end of the third quarter its core tier-1 capital adequacy ratio stood at 13.14%, while its tier-1 capital adequacy ratio was 14.68% and its capital adequacy ratio was 17.45%, all of which satisfy regulatory requirements, while also marking gains compared to the end of the second quarter.

Earlier in the year ICBC’s big state-owned peer China Construction Bank (CCB) completed China’s largest ever single tier-2 capital bond issue, raising 80 billion yuan in funds in August.