Bank of China completes RMB50 bn tier 2 capital bond issuance

Bank of China Limited announced the completion of its RMB50 billion write-down tier 2 capital bonds issuance. The issuance, approved by shareholders and regulatory authorities, took place in the domestic interbank bond market on December 22, 2025, and was completed on December 24, 2025. These bonds are part of a broader proposal to issue capital instruments up to RMB450 billion.

The offering comprised two tranches. The first consists of RMB48 billion in 10-year fixed-rate bonds with a coupon rate of 2.22% and an issuer redemption right at the five-year mark. The second tranche includes RMB2 billion in 10-year floating-rate bonds, with an initial coupon rate of 2.25% for the first interest-accruing period, also featuring an issuer redemption right after five years.

The capital raised from this issuance will be utilized to replenish the bank's tier 2 capital, aligning with applicable laws and regulatory approvals.