Bank of Communications completes CNY 40bn bond issuance

Bank of Communications (SSE:601328) has announced the successful completion of its issuance of the first tranche of total loss-absorbing capacity non-capital bonds (Bond Connect) for 2025. The issuance, approved by regulatory authorities, was completed on June 16, 2025. The total issuance size was CNY 40 billion, split into two tranches. The first tranche, consisting of 4-year fixed-rate bonds, totaled CNY 34 billion with a coupon rate of 1.79%, and includes a conditional issuer redemption option at the end of the third year. The second tranche comprised 6-year fixed-rate bonds, totaling CNY 6 billion with a coupon rate of 1.88%, with a conditional issuer redemption option at the end of the fifth year. The bank intends to use the net proceeds, after deducting issuance costs, to enhance its total loss-absorbing capacity, subject to applicable laws and regulatory approvals.