Bank of China to distribute and redeem offshore preference shares

Bank of China (SSE: 601988) announced a dividend distribution and subsequent redemption of its offshore preference shares. The dividend payment, totaling approximately $112.8 million (pre-tax), covers the period from March 4, 2024, to March 4, 2025. After a 10% withholding tax on dividends paid to non-resident enterprise shareholders, the net dividend payable to shareholders is $101.52 million. The record date is March 3, 2025, with payment on March 4, 2025. Concurrently, the bank will redeem all outstanding offshore preference shares at their face value plus accrued and unpaid dividends. The Bank of New York Mellon, London Branch, will act as the paying agent. This action follows approval from the China Banking and Insurance Regulatory Commission for the redemption.