Bank of China completes CNY 50bn tier 2 bond issuance

Bank of China (SSE:601988) announced the completion of its issuance of CNY 50 billion in Tier 2 capital bonds on May 26, 2025. This follows shareholder approval in June 2023 for the issuance of capital instruments not exceeding CNY 4,500 billion or its equivalent in foreign currencies, and subsequent regulatory approvals. The bonds, issued on the national interbank bond market beginning May 22, 2025, are 10-year fixed-rate bonds with a coupon rate of 1.93%, and include an issuer redemption option at the end of the fifth year. The bank intends to use the proceeds to bolster its Tier 2 capital, subject to applicable laws and regulatory approvals.