Bank of China Lists ¥2.5B and HK$1B Debt Notes
Bank of China has listed ¥2.5 billion in notes due 2028 and HK$1 billion in notes due 2029, expanding its access to capital through a U.S.$40 billion medium-term note program. The issuances, detailed in a November 10th exchange filing, are specifically targeted toward professional investors, reflecting a strategic move to diversify funding sources.
The ¥2.5 billion tranche carries a 1.60% interest rate and matures in 2028, while the HK$1 billion tranche offers a 3.95% yield and matures in 2029. The listing is expected to be effective on November 11, 2026, and will allow trading of the notes on the Hong Kong Exchange. A consortium of banks, including Agricultural Bank of China, HSBC, and Citigroup, acted as joint global coordinators, lead managers, and bookrunners for the offerings.
This move comes amid rising corporate bond issuances in China, as companies capitalize on currently favorable yield conditions. The debt program provides Bank of China with flexibility in managing its capital structure and funding future growth initiatives, and allows the bank to participate in the current market dynamic where professional investors are seeking fixed-income opportunities. The listing of these notes represents a continuation of Bank of China’s broader strategy to bolster its capital base, as evidenced by its recent RMB50 billion Tier 2 capital bond issuance in October 2026.
The listing of these notes will likely be monitored by investors and analysts as an indicator of market appetite for Chinese bank debt and a gauge of broader confidence in the Chinese financial system.