Aug 16, 2010 06:05 PM

ICBC's Huarong Bonds Extended for 10 Years

Industrial and Commercial Bank of China had the bonds it bought from Huarong Assets Management Co. extended for 10 years, according to a statement by the Beijing-based lender.

The Ministry of Finance has informed ICBC that it would provide support to China Huarong over the payment of the principal and interest of a 313 billion yuan bond issued to ICBC, according to the statement.

In 2000, China Huarong Assets Management Co., Great Wall Assets Management Co., China Oriental Assets Management Co. and China Cinda Assets Management Co. were created to take over 1.4 trillion yuan of bad loans from ICBC, the Agricultural Bank of China, Bank of China and China Construction Bank, respectively, by issuing 820 billion yuan bonds to the banks. The yield was 2.25 percent for 820 billion yuan of non-transferable bonds.

Last September, CCB had the 247 billion yuan bond from Cinda AMC extended by 10 years. In June, BOC had the bond issued by the Oriental AMC rolled over by 10 years.

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