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ICBC seeks up to $4.4 bln in capital deal; term sheet

HONG KONG, Sept 16 (Reuters) – Industrial and Commercial Bank of China (ICBC) is aiming to raise up to 30 billion yuan ($4.4 billion) in additional tier one perpetual offshore preference shares, according to a term sheet seen by Reuters.

The bank, the world’s largest by assets, is speaking to investors on Wednesday and has flagged an initial yield of around 3.95%.

ICBC had 31.1 trillion yuan in total assets at the end of June.

The offshore preference shares will be denominated in US dollars and will be counted as part of the bank’s additional tier one capital levels.

Pricing of the issuance is due to occur later on Wednesday, the term sheet says.

Bank of China raised $2.82 billion in late February by issuing the same type of offshore preference shares with a yield of 3.6%.

ICBC’s issuance will be rated Ba1 by Moody’s and the securities will be listed on the Hong Kong Stock Exchange.

ICBC said in its semi-annual report in late August that the banking regulator approved a quota to sell up to 130 billion yuan in selling tier two bonds.

The ICBC’s board also approved a proposal to sell 100 billion yuan worth of perpetual bonds on Aug. 28, but the proposals still need to be approved by mainland regulators. (Reporting by Scott Murdoch in Hong Kong; Editing by Simon Cameron-Moore)

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