SHANGHAI, March 4 (Reuters) - Bank of China , the country's fourth-largest lender, said on Thursday it will issue 24.93 billion yuan ($3.65 billion) in 15-year subordinated bonds next Tuesday.
It said in a statement the 15-year subordinated issue will have a 10-year call option, meaning Bank of China will have the option to redeem them at that time, confirming what sources told Reuters last month.
The sources had said the proceeds could be used to replenish capital as some of Bank of China's bonds were redeemable this month.
On Thursday, the bank said the proceeds would be used to enhance its capital. It said separately it would redeem two outstanding subordinated bonds with a combined total of 24.93 billion yuan.
The subordinated bonds would be priced through book-building on Wednesday next week, with the coupon expected to step up after 10 years by 300 basis points if the issuer does not choose to redeem the issue at the end of 10 years, Bank of China said.
The lead underwriter is BOC International and the underwriter is Citic Securities.
(Reporting by Jason Subler and Karen Yeung; Editing by Jacqueline Wong)
((jason.subler@thomsonreuters.com; +8610 6627 1215; Reuters Messaging: jason.subler.reuters.com@reuters.net)) Keywords: BANKOFCHINA/DEBT (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
It said in a statement the 15-year subordinated issue will have a 10-year call option, meaning Bank of China will have the option to redeem them at that time, confirming what sources told Reuters last month.
The sources had said the proceeds could be used to replenish capital as some of Bank of China's bonds were redeemable this month.
On Thursday, the bank said the proceeds would be used to enhance its capital. It said separately it would redeem two outstanding subordinated bonds with a combined total of 24.93 billion yuan.
The subordinated bonds would be priced through book-building on Wednesday next week, with the coupon expected to step up after 10 years by 300 basis points if the issuer does not choose to redeem the issue at the end of 10 years, Bank of China said.
The lead underwriter is BOC International and the underwriter is Citic Securities.
(Reporting by Jason Subler and Karen Yeung; Editing by Jacqueline Wong)
((jason.subler@thomsonreuters.com; +8610 6627 1215; Reuters Messaging: jason.subler.reuters.com@reuters.net)) Keywords: BANKOFCHINA/DEBT (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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