Bank of Communications eyes Rmb40bn perpetual bonds

Credit: REUTERS/JASON LEE

Bank of Communications plans to issue Rmb40bn (US$5.65bn)perpetual bonds to replenish Additional Tier 1 capital, according to a public filing.

BEIJING/SINGAPORE, Sept 16 (IFR) - Bank of Communications plans to issue Rmb40bn (US$5.65bn)perpetual bonds to replenish Additional Tier 1 capital, according to a public filing.

Bookbuilding starts on Wednesday and the settlement date is on September 20.

Guotai Junan Securities is the lead underwriter and lead bookrunner while BOC International, Citic Securities, ICBC, China Merchants Bank, Agricultural Bank of China, Haitong Securities and Postal Savings Bank of China are joint underwriters.

The bonds are callable after five years.

Golden Credit rates AAA both the issuer and the bonds.

Seven Chinese banks have issued a combined Rmb370bn of perpetual bonds this year.

(Reporting by Yanfei Wang and Daniel Stanton; Editing by Vincent Baby)

((Yanfei.Wang@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More