BOCOM International to issue 1.1b yuan and US$134m subordinated perpetual securities

BOCOM International (3329) said on Wednesday that it plans to issue 1.1 billion yuan (HK$1.29 billion) and US$134 million (HK$1.05 billion) subordinated perpetual securities, with net proceeds used for repaying existing liabilities or funding incremental asset deployment to support its business development.

The company said it has completed the pricing in respect of the proposed issuance and has received subscription commitments from BOCOM and other institutional investors.

The subordinated perpetual securities are issued by way of a private placement and are not offered to any public in Hong Kong or listed on any stock exchanges, and the issuance price of the securities is 100 percent of their principal amount, according to an exchange filing.

For the first three years after the issuance, the initial distribution rates of the yuan-denominated subordinated perpetual securities and the US dollar-denominated subordinated perpetual securities are 2.5 percent and 5.5 percent per annum, respectively.

The distribution rate shall be reset every three years after the expiry of the first three years, whereby that of yuan-denominated subordinated perpetual securities will be calculated at the yield of the three-year China sovereign bond plus the initial spread and an additional step-up margin of 2 percent, and that of US dollar-denominated subordinated perpetual securities shall be calculated at the three-year US Treasury rate plus the initial spread and an additional step-up margin of 3 percent.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓