Ant Group’s MYBank Issues 4B Yuan in Perpetual Bonds

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Ant Group-backed digital lender MYBank (网商银行) has issued a second batch of perpetual bonds as part of efforts to shore up its core capital adequacy levels.

On 28 May MYBank issued 1.5 billion yuan in perpetual bonds, with a coupon rate of 4.9% and a triple A credit rating. The issue was underwritten by China International Capital Corporation, CITIC Securities, China Merchant Securities and CSC Financial.

The issuance brings funds raised by MYBank via perpetual bonds for capital supplementation purposes to 4 billion yuan in total in less than a year, following a 2.5 billion yuan issue in July 2020.

MYBank is the first privately operated lender to issue perpetual bonds in China in 2021, and the May issue brings the number of Chinese banks that have issued perpetual bonds since the start of the year to 20 in total. 16 small and medium-sized Chinese banks have also obtained approval for perpetual bond issues before the end of the year.

MYBank commenced operation in June 2015. Ant Group is its largest shareholder, with a 30% equity stake.

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