Weihai City Bank has approval to issue up to RMB 32 billion of bonds

By Mary-Katherine Stinson

Lexington, Ky., March 25 – Weihai City Commercial Bank Co., Ltd. has approval to issue up to RMB 32 billion of bonds, according to an announcement.

The bank’s board has approved the total issue of up to RMB 32 billion of bonds, including non-capital financial bonds not exceeding RMB 20 billion, tier-two capital bonds not exceeding RMB 6 billion and perpetual capital bonds not exceeding RMB 6 billion in tranches between 2024 and 2026.

The types of bonds may include, but are not limited to, non-capital financial bonds such as ordinary financial bonds, green financial bonds, special financial bonds for small and micro enterprises, tier-two capital bonds and perpetual capital bonds. They may bear interest at a fixed or floating rate.

The proposed issue mandate is subject to shareholders’ approval, approval from relevant regulatory authorities as well as market conditions. The resolution will be valid within 36 months from the date of approval at the 2023 annual general meeting.

Funds raised from non-capital financial bonds will be used to optimize the bank’s mid and long-term asset-liability structure, increase stable sources of liabilities and support the development of business, including issuing small and micro-enterprise loans, agriculture-related loans, green industry loans and other loans.

Funds raised from tier-two capital bonds and perpetual capital bonds will be used to supplement the bank’s tier-two capital and tier-one capital, respectively, optimize the capital structure, increase the level of capital adequacy and enhance the capacity to resist risks.

The issuer is a commercial bank based in Weihai, China.

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