Bank of China Bolsters TLAC With RMB40 Billion Bond Connect Issue

An update from Bank of China ( (HK:3988) ) is now available.

Bank of China has completed the issuance of a four-year, fixed-rate, total loss-absorbing capacity (TLAC) eligible non-capital bond under its previously approved programme of up to RMB200 billion or equivalent in foreign currencies. The RMB40 billion tranche, issued in the domestic interbank bond market via Bond Connect at a 1.72% coupon with a conditional redemption option after three years, is intended to strengthen the bank’s TLAC profile in line with regulatory expectations and bolster its resilience for stakeholders.

The proceeds, after offering expenses, will be used specifically to enhance the bank’s loss-absorbing capacity subject to regulatory approvals, supporting its ability to meet evolving prudential requirements and absorb potential future shocks. This issuance underscores Bank of China’s ongoing effort to optimize its liability structure, maintain compliance with global and domestic TLAC frameworks, and reinforce market confidence in the robustness of its balance sheet.

The most recent analyst rating on (HK:3988) stock is a Buy with a HK$5.30 price target. To see the full list of analyst forecasts on Bank of China stock, see the HK:3988 Stock Forecast page.

More about Bank of China

Bank of China Limited is a major state-owned commercial bank in the People’s Republic of China, offering a broad range of banking and financial services across corporate, retail and institutional clients. Listed in Hong Kong under stock code 3988, it plays a key role in China’s domestic and international financial markets and regularly taps bond markets for regulatory capital and funding needs.

Average Trading Volume: 220,823,789

Technical Sentiment Signal: Buy

Current Market Cap: HK$1965.5B

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