Pudong Development Bank completes RMB 200 bn bond issuance

Shanghai Pudong Development Bank (SPD Bank) has announced the successful issuance of its 2025 Second Tranche Financial Bonds, raising a total of RMB 200 billion. The bonds, with a 3-year tenor, were successfully issued on December 12, 2025, following a book-building process on December 10, 2025.

The issuance comprises two tranches: a fixed-rate bond (Tranche One) of RMB 125 billion with a coupon rate of 1.85%, and a floating-rate bond (Tranche Two) of RMB 75 billion. Tranche Two's coupon rate is linked to the 1-year LPR, floating at 112 basis points below it, with an initial coupon rate of 1.88%.

The proceeds from this bond issuance will be utilized to meet the bank's asset-liability allocation needs, enrich funding sources, optimize the maturity structure of liabilities, and foster stable business development. A key focus for the deployment of these funds is prioritized credit to consumer service industries such as wholesale and retail, accommodation and catering, cultural tourism, education and training, and health and elder care, aiming to boost consumption.