Bank of China completes RMB40bn undated capital bond issuance

Bank of China Limited announced the completion of its RMB40 billion write-down undated capital bonds issuance on August 26, 2025. This follows shareholder approval on June 30, 2023, to issue capital instruments up to RMB450 billion or equivalent in foreign currencies. The bonds, issued in the domestic interbank market on August 22, 2025, carry a coupon rate of 2.16% for the initial five years, with rate resets every five years. The bank retains the option to redeem these bonds from the fifth year onwards on any distribution payment date.

The proceeds from this issuance are designated to replenish the bank's additional Tier 1 capital, adhering to applicable laws and regulatory approvals. This move aligns with the bank's ongoing capital management objectives, including maintaining a reasonable capital adequacy ratio and supporting its business strategies.

Concurrently, Bank of China has published an offering circular for its U.S.$40,000,000,000 medium term note program on the Hong Kong Stock Exchange, dated August 25, 2025. This program facilitates future debt issuances to professional investors, providing a flexible framework for the bank to manage its funding and capital structure.