CITIC Bank International is planning to issue dollar-denominated and offshore yuan-denominated perpetual bonds, according to a term sheet confirmed by Reuters. Initial yield guidance is around 5.45 percent for the dollar bonds and around 2.90 percent for the offshore yuan bonds, both of benchmark size. These are Additional Tier 1 bonds, which help strengthen the bank's capital base and can absorb losses if the bank's operations fall into severe distress. The issuer can redeem the bonds after five years, starting from July 22, 2031, and pricing is expected as early as the 15th.
China Citic Bank Corp Ltd Class ACITIC Bank International, a subsidiary of China Citic Bank, is issuing AT1 perpetual bonds to strengthen its capital base, which is positive for the parent company's financial stability.