Agricultural Bank of China plans $72 billion bond issuance

Agricultural Bank of China (ABC) announced plans to issue up to 5200 billion yuan (approximately $720 billion USD) in capital instruments and total loss-absorbing capacity (TLAC) non-capital bonds. The issuance will occur in multiple tranches, pending regulatory approvals from the People's Bank of China and the China Banking and Insurance Regulatory Commission. The bonds will include write-down perpetual capital bonds, write-down Tier 2 capital instruments, and write-down TLAC non-capital bonds. Proceeds will bolster ABC's capital reserves and enhance its ability to absorb losses. The shareholder vote will occur on January 24, 2025, and the issuance authorization will be valid for 24 months following regulatory approval. Additionally, shareholders will vote on the election of Mr. Zhang Qi as an independent director.