SINGAPORE — China CITIC Bank International plans to issue US dollar and offshore yuan perpetual bonds, according to two term sheets reviewed by Reuters on Wednesday.
The bank has set an initial price guidance at around 5.45 percent for the US dollar bond and around 2.90 percent for the offshore yuan bond, the term sheets showed.
Both deals are benchmark-sized, which usually means large enough to serve as a pricing reference for other bonds. That is typically at least $500 million for a US dollar bond, though the term sheets did not give exact amounts.
The bank plans to hold a global investor call later on Wednesday, according to a deal update seen by Reuters. The bonds may be priced as early as Wednesday.
The securities are additional tier 1 bonds, which are a type of bank debt that helps strengthen a lender’s capital base and can absorb losses if the bank runs into serious trouble.
The bonds can be redeemed by the bank after five years, on July 22, 2031. The proceeds will be used for funding and general corporate purposes.
China CITIC Bank International did not immediately respond to an emailed request for comment.
