BANK OF CHINA has successfully issued a 500 million yuan Free Trade Zone offshore bond with a 9-month tenor and an issuance rate of 1.6%. This marks not only the first such bond successfully launched in the European market but also a pioneering initiative as it represents the first Free Trade Zone offshore bond from a European issuer to incorporate investors from a Free Trade Unit (FTU).

The issuance was conducted by BANK OF CHINA Frankfurt Branch as the issuer, with BANK OF CHINA Hong Kong Branch, BOC Hong Kong (Holdings) Limited, and BOC International Holdings Limited acting as joint global coordinators. The registration and custody services were provided by the China Central Depository & Clearing Co., Ltd. The bond received enthusiastic subscription from international investors, highlighting the strong recognition of BANK OF CHINA's comprehensive strength and credit quality in the global capital markets. It also demonstrates the bank's robust capability in diversified financing, providing a valuable model for European companies and financial institutions seeking to broaden their yuan-denominated financing channels.

Free Trade Zone offshore bonds, fully known as Free Trade Zone Offshore Bonds, are a significant cross-border debt financing instrument launched under the innovative account system of the Shanghai Free Trade Zone. Following the principle of "both ends outside"—meaning the issuance and investment sides are based outside mainland China—they complement the offshore U.S. dollar bond and offshore yuan bond (dim sum bond) markets, forming a multi-tiered and complementary overseas financing system for Chinese institutions. The FTU is a dedicated account and accounting system established within domestic financial institutions for conducting offshore business and investments. The key breakthrough in this issuance was the first-time inclusion of FTU investors, which effectively broadened the investor base and advanced the international use of the yuan.

Leveraging its global service network, BANK OF CHINA will continue to diversify the types of products and issuers in the Free Trade Zone offshore bond market. The bank is committed to deepening innovation in cross-border investment and financing products, contributing greater financial strength to promote the internationalization of the yuan and support high-level economic and trade cooperation between China and Europe.