On November 18, ICBC announced the reset of the coupon dividend rate for its domestic preferred shares, "ICBC You 1" (code: 360011). According to the terms outlined in the "Industrial and Commercial Bank of China Limited Non-Public Issuance of Preferred Shares Prospectus" (referred to as the "Prospectus"), the bank issued these non-public preferred shares in November 2015.
The coupon dividend rate for "ICBC You 1" follows a phased adjustment mechanism, calculated as the benchmark rate plus a fixed spread. The initial dividend rate remained unchanged for the first five years from the issuance date. Subsequently, the benchmark rate is reset every five years, while the fixed spread—determined at issuance—remains constant throughout the shares' tenure.
With the five-year period since the last reset now concluding, ICBC has proceeded to reset the coupon dividend rate for "ICBC You 1" in accordance with the Prospectus.
The reset coupon dividend rate is derived from the benchmark rate on the reset date (November 18, 2025) plus the fixed spread. The benchmark rate is set at the arithmetic average of the five-year Chinese government bond yield (rounded to 0.01%) over the 20 trading days prior to the reset date, as published on the ChinaBond website or other recognized platforms by the China Central Depository & Clearing Co., Ltd. This benchmark rate stands at 1.58%. The fixed spread, determined at issuance, is 1.56%.
As a result, starting November 23, 2025, the reset coupon dividend rate for "ICBC You 1" will be 3.14% (1.58% benchmark rate + 1.56% fixed spread), with dividends paid annually.
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