Agricultural Bank of China completes RMB60 bn tier 2 capital notes issue

Agricultural Bank of China Limited announced the completion of its RMB60.0 billion 2025 Tier 2 Capital Notes (Series 3) issue on September 19, 2025. This issuance, approved at the bank’s first extraordinary general meeting on February 21, 2025, aims to boost the bank’s Tier 2 capital. Book running for the notes took place on September 17, 2025.

The notes were issued in two tranches. Tranche 1, a 10-year fixed rate note, totals RMB35.0 billion with an interest rate of 2.18%. The bank holds a conditional redemption right for this tranche on the last day of the fifth anniversary year. Tranche 2 comprises a 15-year fixed rate note, amounting to RMB25.0 billion, with an interest rate of 2.50%, and includes a conditional redemption right on the last day of the tenth anniversary year.

The proceeds from these notes will be used to strengthen the bank's Tier 2 capital in accordance with applicable laws and regulatory approvals. The issuance was made in the National Interbank Bond Market.