By William Gullotti
Buffalo, N.Y., Nov. 16 – Bank of China Ltd. sold RMB 50 billion of tier 2 capital bonds in two parts, according to an announcement on Tuesday.
The first tranche consists of RMB 40 billion of 3.6% notes with a 10-year term, and the second tranche is for RMB 10 billion with a coupon rate of 3.8% and a 15-year tenor.
The first tranche may be redeemed in year five, and the second tranche can be redeemed at the end of the tenth year.
The notes were issued in the domestic interbank bond market.
Proceeds will be used to replenish the bank’s tier 2 capital.
The lender is based in Beijing.
| Issuer: | Bank of China Ltd.
|
| Issue: | Tier 2 capital bonds
|
| Amount: | RMB 50 billion
|
| Issue date: | Nov. 12
|
| Settlement date: | Nov. 16
|
|
|
| Tranche 1
|
| Amount: | RMB 40 billion
|
| Maturity: | 10 years
|
| Coupon: | 3.6%
|
| Call option: | End of the fifth year
|
|
|
| Tranche 2
|
| Amount: | RMB 10 billion
|
| Maturity: | 15 years
|
| Coupon: | 3.8%
|
| Call option: | End of the tenth year
|
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