Bank of China (03988) has announced the successful completion of its issuance of write-down perpetual capital bonds.

The bank's shareholders had approved the plan to issue up to RMB 450 billion or its equivalent in foreign currency of capital instruments during the general meeting held on July 18, 2025. Following regulatory approval, the issuance took place on August 20, 2026, in the national interbank bond market, with the bonds fully issued by August 24, 2026.

This bond issuance amounts to RMB 20 billion, with a coupon rate of 1.86% for the initial five-year period. The coupon will be reset every five years, and the issuer holds the option to redeem the bonds at the fifth year and on each subsequent interest payment date. The proceeds from this issuance will be allocated to strengthen the bank's Additional Tier 1 capital, subject to applicable laws and regulatory approvals.