ICBC to Issue $25Bln CBs on June 18

The ICBC plans to issue $25 billion A-share CBs and raise up to 45 billion yuan via a rights issue in Shanghai and Hong Kong.

Industrial and Commercial Bank of China (601398.SH/001398.HK), the world's largest lender by market value, is planning to issue $25 billion convertible bonds on Wednesday.

The issue would get approval from China Securities Regulatory Commission with no suspense, according to analysts, and will affect the price of the CBs in a short term.

The value of CBs in Shanghai and Shenzhen stock markets will increase to 77.1 billion yuan from 52.1 billion, up nearly 50 percent. The last surge of CBs can be traced back to 18 June, 2010 when the Bank of China issued and listed A-share convertible bonds on the Shanghai Stock Exchange at an offer price of 100 yuan per bond raising approximately 40 billion yuan.

It took the Bank of China only four months to complete the issue of CBs and Shanghai listing, compared with at least six months for other small and medium-sized banks. Deducing that therefore, the ICBC is expected to finish the issue within four months.

China Securities Regulatory Commission said last Friday on its website it will review the ICBC's convertible bonds issuance plan on Wednesday.