ABC (01288) announced the successful issuance of its 2025 Total Loss-Absorbing Capacity (TLAC) Non-Capital Bonds (Third Tranche) (Bond Connect) on December 1, 2025, following bookbuilding on November 27, 2025. The total issuance amounted to RMB 20 billion, divided into three tranches.
Tranche 1 consists of 4-year fixed-rate bonds totaling RMB 14 billion with a coupon rate of 2.02%, featuring an issuer conditional redemption option at the end of the third year. Tranche 2 comprises 6-year fixed-rate bonds worth RMB 3 billion, carrying a 2.12% coupon and a conditional redemption option at the fifth year. Tranche 3 offers 11-year fixed-rate bonds valued at RMB 3 billion, yielding 2.50% with a redemption option exercisable after the tenth year.
Proceeds from the bond issuance, after deducting issuance costs, will be used to enhance the bank's total loss-absorbing capacity in compliance with applicable laws and regulatory approvals.
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