Bank of China redeems $60 bn tier 2 capital bonds

Bank of China Limited announced the redemption of its RMB 60 billion tier 2 capital bonds, originally issued on September 17, 2020. These 10-year fixed-rate, write-down type bonds were fully redeemed by the Bank, exercising its call option.

The terms of the bond's offering circular included an issuer's redemption right, allowing the Bank to redeem the bonds on the last day of the fifth interest-accrual year. Due to a public holiday, the redemption payment was deferred to the first subsequent business day. The Bank has fully exercised this right, completing the full redemption.