BANK OF CHINA (03988.HK): RMB 40 billion 2026 second-tranche TLAC non-capital bonds (Bond Connect) fully issued

NewTimeSpace · 2026/09/07 17:34 · By Zeyu Wu

On 7 September 2026, BANK OF CHINA (03988.HK) announced the completion of its 2026 second-tranche TLAC non-capital bonds (Bond Connect), with a total size of RMB 40 billion: Tranche 1 of RMB 20 billion is a 4-year fixed-rate bond with a coupon of 1.69% (with a conditional issuer redemption option at the end of the third year), and Tranche 2 of RMB 20 billion is a 6-year fixed-rate bond with a coupon of 1.79% (with a conditional issuer redemption option at the end of the fifth year). Net proceeds will be used to enhance the bank's total loss-absorbing capacity.

NewTimeSpace News: On 7 September 2026, Bank of China Limited (stock code: 03988) announced that the issuance of its 2026 second-tranche total loss-absorbing capacity (TLAC) non-capital bonds (Bond Connect) had been completed on the same day. The bonds were issued on 3 September 2026 in the national interbank bond market, with a total size of RMB 40 billion in two tranches.

Tranche 1 has a size of RMB 20 billion and is a 4-year fixed-rate bond with a coupon rate of 1.69% and a conditional issuer redemption option at the end of the third year; Tranche 2 has a size of RMB 20 billion and is a 6-year fixed-rate bond with a coupon rate of 1.79% and a conditional issuer redemption option at the end of the fifth year.

The bank's shareholders' meeting held on 18 July 2025 approved the issuance of up to RMB 200 billion or the equivalent in foreign currency of TLAC non-capital debt instruments. Net proceeds from the bonds, after deducting issuance expenses, will be used to enhance the bank's total loss-absorbing capacity in accordance with applicable laws and approvals from competent authorities.

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