China Merchants Bank (HKG:3968, SHA:600036) completed the issue of 27 billion yuan of undated additional tier 1 capital bonds on May 29, a May 30 Hong Kong bourse filing said.

The bonds carry a coupon rate of 2.05% for the first five years, following which it will be adjusted every five years.

The issuer will have conditional redemption rights on every interest payment date including and after the fifth year.

The lender will use proceeds from the issue to replenish additional Tier 1 capital.