The Bank of China on Friday launched a perpetual bond worth 40 billion yuan (about 5.97 billion U.S. dollars) in the interbank bond market of the country.
It was the first perpetual bond ever issued by a Chinese commercial bank, which could pave the way for the broader use of the means to replenish the tier-one capitals of commercial banks, said sources with the People's Bank of China.
The capital-raising method was expected to enhance the efficiency of monetary policies and better ward off risks in the financial system.
The bond with no maturity date and a nominal interest rate of 4.5 percent was oversubscribed by more than double the availability.
More than 140 investors including domestic insurance companies, securities companies, finance companies and securities investment funds, foreign central banks, insurance companies and assets management companies participated in the subscription.
It was the first perpetual bond ever issued by a Chinese commercial bank, which could pave the way for the broader use of the means to replenish the tier-one capitals of commercial banks, said sources with the People's Bank of China.
The capital-raising method was expected to enhance the efficiency of monetary policies and better ward off risks in the financial system.
The bond with no maturity date and a nominal interest rate of 4.5 percent was oversubscribed by more than double the availability.
More than 140 investors including domestic insurance companies, securities companies, finance companies and securities investment funds, foreign central banks, insurance companies and assets management companies participated in the subscription.
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