A customer walks at a Industrial and Commercial Bank of China Ltd (ICBC) branch at the Shanghai. [Photo/Agencies]

Industrial and Commercial Bank of China has become the first Chinese bank to issue debt on London Stock Exchange's Main Market on Thursday, marking a significant milestone in the bank's endeavor to adopt more mainstream practices in the international financial field.

ICBC listed a $10 billion medium term note program on the LSE. It intends to issue parts of this whole amount over the next three to five period, whenever it sees a business need.

Prior to ICBC's issuance, other Chinese banks have already listed debt instruments on the LSE, but they are listed in the Professional Securities Market (PSM) of the LSE, which have different regulatory requirements.

The main market has more stringent regulatory requirements, and consequently debts listed on this market allows participation from a broader range of investors. ICBC has worked for a year to complete this process to meet the regulatory requirements.

Chen Jin, managing director of ICBC (London) plc, said that the bank chose to issue on the Main Market because it will make the debt more attractive to investors. Another benefit is that issuing on the Main Market allows the bank more flexibility whenever it wants to use a new portion of the total note program value.

The listing on the Main Market is also a part of the bank's effort to demonstrate its high level of corporate governance, and its ability to satisfy higher transparency requirements, Chen says.

Nikhil Rathi, CEO of London Stock Exchange, said that the exchange is very keen to work with Chinese banks in helping them to raise capital, and the deep liquidity and wide investor base it has access to is a great advantage.

Rathi said that the exchange is also very keen to help Chinese firms to IPO on its platform. His team is also conducting a feasibility study into the potential of setting up a London Shanghai stock connect program, which could lead into the two exchanges' investors trading shares on the other exchange.