China Everbright Bank Company Limited has announced an adjustment to the dividend rate for its second series of perpetual preferred shares, code named 光大优2.
According to the bank's official statement, the adjustment follows the terms outlined in the offering prospectus for the non-public issuance of these perpetual preferred shares. The initial batch was issued in August 2016.
These preferred shares employ a phased reset mechanism for their dividend rate. The rate is calculated as the sum of a base rate and a fixed spread. For the first five-year period, the dividend rate remained unchanged from the issuance date. After that, the base rate resets every five years, with the dividend rate staying constant within each reset cycle.
The second dividend adjustment period for 光大优2 is now concluding. As per the prospectus, the bank is setting the dividend rate for the third adjustment period. The new coupon rate is the base rate on the reset date plus the fixed spread.
The base rate for this reset is determined as the arithmetic average of the 5-year China Treasury bond yield published by the China Bond Information Network over the 20 trading days immediately preceding the reset date, excluding the reset day itself. The base rate has been calculated at 1.43%, rounded to 0.01%. The fixed spread was set at 1.28% at the time of issuance and remains unchanged.
Consequently, effective from August 11, 2026, the dividend rate for the third adjustment period of 光大优2 will be 2.71% (1.43% base rate plus 1.28% fixed spread), with dividends paid annually.
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