Bank of Communications Obtains Approval for First Issue of Convertible Bonds


One of China’s big four banks has obtained approved from China’s banking regulator for its first issue of convertible bonds to shore up its capital adequacy.

Bank of Communications (BOC) announced on 16 October that it had recently received the “China Banking and Insurance Regulatory Commission’s Approval Concerning Bank of Communications’ Public Issue of A Share Convertible Corporate Bonds” (中国银保监会关于交通银行公开发行A股可转换公司债券的批复).

CBIRC has given its approval to BOC issuing no more than 60 billion yuan in A-share convertible bonds, for inclusion as core tier-1 capital following conversion in accordance with the relevant regulatory requirements.

BOC’ s mid-year report indicates that its capital adequacy ratio stands at 13.86%, while its tier-1 capital adequacy ratio is 11.69% and its core tier-1 capital adequacy ratio is 10.63%.