China Merchants Bank completes perpetual capital bond issuance

China Merchants Bank (SSE:600036) has announced the successful completion of the issuance of its "2025 China Merchants Bank Co., Ltd. Perpetual Capital Bonds (Second Tranche) (Bond Connect)." Approved by the National Administration of Financial Regulation, the bonds were book-built on May 27, 2025, and issuance was completed on May 29, 2025. The total issuance volume reached CNY 270 billion, with an initial coupon rate of 2.05% for the first five years, subject to adjustment every five years. The issuer reserves the right to redeem the bonds conditionally on each interest payment date starting from the fifth year. The proceeds from this bond issuance will be used to supplement the bank's Additional Tier 1 capital, subject to applicable laws and regulatory approvals.