On March 17, Post Savings Bank of China (hereinafter referred to as PSBC) announced on China Bond that it completed the issuance of 2020 non-fixed term capital bonds worth 80 billion yuan (about 11.43 billion US dollars), with a coupon rate of 3.69% on March 16.
Non-fixed term capital bonds are one of the important tools for commercial banks to replenish capital. The current domestic non-fixed term capital bonds issued by PSBC mainly present the following characteristics.
First, the issuer is well qualified. According to the comprehensive assessment of China Chengxin International Credit Rating Co., Ltd. (CCXI), the issuer rating and the debt rating of PSBC current non-fixed term capital bonds are both AAA. Previously, PSBC was rated A +, A and A1 by Fitch, Standard & Poor's and Moody's respectively. In addition, S&P Global China Ratings, a wholly-owned subsidiary of S&P Global Inc., also assigns AAAspc issuer credit rating to PSBC. All that are mentioned above fully reflects the high recognition of the rating agencies for the operating performance and entity qualification of PSBC.
Second, there are highlights in clauses. The current bonds are the first non-fixed term capital bonds successfully issued by a large state-owned commercial bank with gone-concern trigger as the only trigger event for write-off, further reducing the risk of write-off and improving the safety of investment.
Third, the single issue size is large. The issue size of the bonds reaches 80 billion yuan (about 11.43 billion US dollars), and the issuance is completed at one time.
Fourth, the investors subscribe enthusiastically. Although the issuance faces a complex market environment, investors are extremely enthusiastic, so that the over-subscription rate exceeds 2 times. At the same time, the investor structure of this issuance is diversified, covering nearly 100 domestic and foreign institutions including non-commercial banks, large state-owned commercial banks, joint-stock banks, urban and rural commercial banks, insurance companies, securities companies, fund companies, bank financing subsidiaries and overseas asset management companies.