Industrial and Commercial Bank of China (SHA:601398, HKG:1398) or ICBC completed the issue of 40 billion yuan of undated additional tier 1 capital bonds on Tuesday, a same-day Hong Kong bourse filing said.

The distribution rate for the bonds is 1.97% for the first five years, after which it will be adjusted every five years.

The lender will have conditional redemption rights on each distribution payment date from the fifth anniversary.

The bank will use proceeds from the issue to replenish its additional tier 1 capital.