China International Capital Corporation Limited (CICC) has announced the indicative coupon rate range for its upcoming perpetual subordinated bond issuance, set at 1.40% to 2.40% per annum.

The company, which is listed on the Hong Kong Stock Exchange under the ticker 03908, disclosed that it will issue the fifth tranche of its 2026 perpetual subordinated bonds to professional investors, with a total offering size of up to RMB 4.6 billion (including RMB 4.6 billion). This tranche is designated as 26 CICC Y5 with bond code 245824.

The bond issuance follows regulatory approval from the China Securities Regulatory Commission (CSRC) under license number [2025] 2290, which permits CICC to issue perpetual subordinated bonds totaling up to RMB 20 billion (including RMB 20 billion) to professional investors. The bonds will be issued in multiple tranches, with the current tranche representing the fifth installment.

Each bond will have a face value of RMB 100 and will be issued at par. The bonds feature a repricing cycle of five years, during which the company retains the option to extend the bond's term by an additional repricing cycle (another five years) or redeem the bonds in full at the end of each cycle.

The bonds will accrue interest on a simple interest basis annually, without compounding. For the first five interest-bearing years, the coupon rate will be determined through book-building and consultation between the issuer and lead underwriters within the indicative range of 1.40% to 2.40%, and will remain fixed throughout this initial period. Starting from the sixth interest-bearing year, the coupon rate will be reset every five years.

The final coupon rate for this tranche will be negotiated between the lead underwriters and the issuer based on the results of the book-building process, within the specified indicative range.