Zhongyuan Bank seeks OK to issue up RMB 12 billion tier 2 bonds

By Mary-Katherine Stinson

Lexington, Ky., Sept. 21 – The board of directors of China’s Zhongyuan Bank Co., Ltd. will seek the approval of shareholders to issue up to RMB 12 billion of tier 2 capital bonds, according to a notice.

The proposal, which was previously approved by the bank’s board on Aug. 30, will be presented as a special resolution to the 2023 second extraordinary general meeting on Oct. 12.

The bank proposes to issue bonds with tenors of no less than five years over the course of 36 months, which may be issued in one or more tranches.

Proceeds will be used to replenish the bank’s tier 2 capital, as well as a loss-absorbing method if certain triggering events occur.

The commercial bank is based in Zhengzhou, China.

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