Bank of China to plug a major funding shortfall before a 2025 deadline to meet global capital requirements

Bank of China plans US$21 billion bond sales to comply with global capital requirements

    The bank will be the nation’s first big state bank to plug a major funding shortfall before a 2025 deadline to meet global capital requirements. The lender said it plans to tap both domestic and overseas debt markets to sell a new category of total loss-absorbing capacity (TLAC) bonds.

Bank of China said it plans to sell up to 150 billion yuan (US$21 billion) of loss-absorbing bonds, becoming the nation’s first big state bank to plug a major funding shortfall before a 2025 deadline to meet global capital requirements.

The lender said it plans to tap both domestic and overseas debt markets to sell a new category of total loss-absorbing capacity (TLAC) bonds, according to a Friday filing with the Shanghai Stock Exchange.