Mixed investor interest for ICBC's triple-currency preferred shares

The high profile share offering completed last week by Industrial and Commercial Bank of China has received a keen response from Asian investors but has yet to attract foreign interest.

ICBC became the world's first company to simultaneously issue preferred shares denominated in three currencies with its US$2.95 billion, €600 million (HK$5.8 billion) and 12 billion yuan (HK$15.2 billion) offering.

According to the term sheet, up to 98 per cent of the renminbi tranche was sold to investors in Asia. Insurance and central banks were the main subscribers, accounting for 45 per cent and 21 per cent respectively.

Sources said most of the renminbi shares went to state-backed financial institutions, aiming to strengthen ties with Beijing rather than make a profit.

Some media reports said Beijing was pressuring banks to sell a bigger portion of renminbi notes in a move to highlight yuan internationalisation.

"The lower take-up by international investors shows that they think they should be paid considerably more than what the current yield was offering," said Andy Seaman, fixed-income portfolio manager at Stratton Street Capital.