The Industrial and Commercial Bank of China, or ICBC, auctioned 25 billion yuan worth of six-year convertible bonds today. The face value of each convertible bond is 100 yuan, with the coupon rate adding year by year during maturity.
According to ICBC, the world's largest lender by market value, the conversion period will begin on the first trading day after six months from today. The initial conversion price on the six-year convertibles is fixed at 4.2 yuan per underlying stock. Once the bonds mature, the bank will redeem all remaining unconverted stocks within five days after August 31st 2016.