Bank of Communications completes RMB30 bn TLAC bond issuance

Bank of Communications Co., Ltd. announced the completion of its 2025 third tranche total loss-absorbing capacity non-capital bonds (Bond Connect) issuance on November 14, 2025. The total issuance amounted to RMB30 bn.

The issuance comprised two tranches. Tranche one, a 4-year fixed-rate bond, raised RMB26 bn with a coupon rate of 1.93% and includes an issuer's redemption option at the end of the third year. Tranche two, a 4-year floating-rate bond, raised RMB4 bn with an initial coupon rate of 1.94% and a fixed spread of 0.46%, also featuring an issuer's redemption option at the end of the third year.

Proceeds from the bond issuance, after deducting issuing expenses, will be utilized to enhance the bank's total loss-absorbing capacity, in accordance with applicable laws and regulatory approvals.