On August 19, ICBC successfully issued the first batch of bonds in national inter-bank bond market in 2005. This is the first time ICBC issuing Subordinated Bond. Issue of the Bond is under organized underwriting team through Bond Issuing System of Peoples' Bank of China, using adopted unified interests rate/interests difference (Holland Mode) tendering method. Planned tendering amount is 35 billion RMB. Investors subscribed enthusiastically. Altogether there are 41 institutions participated in this tendering subscriptions. According to the internal statistics, total tender amount reached 85.525 billion RMB. Effective subscription is 2.44 times.

Issuing Subordinated Bond is another major move to strengthen capital base after ICBC financial restructuring,which is paving the way for smooth shareholding reform and increase competitiveness, further create advantageous environment. Successful completion of this round of ICBC Bond Issuing reflected the full confidence from investors on ICBC development prospect.

This round of ICBC Bond Issuing is the highest open tender amount of issuing Subordinated Bond in China capital market. ICBC, being the largest commercial bank in China, first time act as Issuer enter Subordinated Bond market. ICBC not only offer investors an investment product of high earnings, low risk, but vigorously help to promote the development of commercial bank subordinated bond in China capital market.

As stated, this batch of Bond includes 3 varieties: 10-yr fixed interests rate, 15-yr fixed interests rate and 10-yr floating interests rate.