By William Gullotti
Buffalo, N.Y., April 26 – China Citic Bank Corp., Ltd. issued RMB 30 billion of undated capital bonds with a 2.42% initial rate on Friday, according to an announcement.
The bonds were book-built on April 24 and were subsequently issued in China’s inter-bank bond market. According to the announcement, the bank’s authorization to issue financial bonds was newly increased to RMB 80 billion, provided that the year-end balance of financial bonds does not exceed RMB 360 billion.
The perpetuals feature five years of call protection. The bank will be able to redeem the bonds on any interest payment date after five years.
The initial interest rate will remain fixed for the first five years and will reset at five-year intervals if the perpetuals are not redeemed.
Proceeds will be used to replenish the bank’s tier 1 capital.
The lender is based in Beijing.
| Issuer: | China Citic Bank Corp. Ltd.
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| Amount: | RMB 30 billion
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| Issue: | Undated capital bonds
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| Maturity: | Perpetual
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| Coupon: | 2.42%; resets at five-year intervals
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| Call: | Non-callable for five years, then on any coupon payment date thereafter
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| Trade date: | April 24
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| Settlement date: | April 26
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