OREANDA-NEWS. October 20, 2014. Agricultural Bank of China Limited (ABC) successfully completed the first issue of tier 2 capital bond in an amount of RMB30 billion at the interbank bond market in China. This is the first capital replenishment instrument meeting the requirements of Basel III issued by ABC since the Regulations Governing Capital of Commercial Banks (Provisional) officially came into effect in 2013.

It is learnt that the bond issued amounted to RMB30 billion, with a term of ten years and fixed interest rate. The coupon rate is 5.8% and the right of redemption will be granted at the end of the fifth year. The funds raised through this bond issue will be used to replenish tier 2 capital of ABC according to the applicable laws and approval of regulatory authorities.

This bond issue attracted investors including wealth management funds of banks, securities companies and asset managers and QFIIs. The success of the tier 2 capital bond issue has created a new channel for ABC to replenish its capital, further improved the capital adequacy and enhanced the risk resistance capacity of the Bank. It has also laid a solid foundation for sound and steady business development in the future.