Bank of China completes RMB40bn capital bond issuance

Bank of China Limited announced the completion of its RMB40 billion write-down undated capital bond issuance on August 26, 2025. This followed approval by the shareholders’ meeting on June 30, 2023, for capital instrument issuance of up to RMB450 billion or equivalent in foreign currencies, and subsequent regulatory approvals. The bonds were issued in the domestic interbank bond market on August 22, 2025.

The bonds carry a coupon rate of 2.16% for the initial five years, with the rate resetting every five years thereafter. Bank of China retains the right to redeem the bonds on any distribution payment date starting from the fifth year onwards.

The proceeds from this issuance are earmarked to strengthen the bank’s additional tier 1 capital, in full compliance with applicable laws and regulatory requirements.