China CITIC Bank International has announced plans to issue perpetual bonds in both US dollars and offshore yuan, according to term sheets reviewed by Reuters on Wednesday. The bank has set initial price guidance at around 5.45% for dollar bonds and 2.90% for yuan bonds. Both deals are classified as benchmark-sized securities, typically meaning they are large enough to serve as pricing references for other bonds, with amounts usually starting at at least $500 million for US dollar bonds. The bank plans to hold a global investor call later on Wednesday, with the bonds potentially priced as early as Wednesday.
The perpetual bonds are classified as additional tier 1 bonds, which are a type of bank debt specifically designed to strengthen a lender's capital base and can absorb losses if the bank encounters serious financial trouble. As reported by Reuters, the securities are structured to be redeemed by the bank after five years on July 22, 2031. The proceeds from these bonds will be used for general corporate purposes after the redemption period.
The bank plans to hold a global investor call later on Wednesday for these securities, according to the term sheets reviewed by Reuters. The dual-currency approach allows CITIC Bank International to tap into both US dollar and offshore yuan markets simultaneously, providing diversified funding options. The bank did not immediately respond to an emailed request for comment regarding the bond issuance plans.
