Financial Services Association, May 28 (Reporter Peng Kefeng) On the evening of May 27, Jiangsu Suzhou Rural Commercial Bank Co., Ltd. (hereinafter referred to as Sunong Bank) issued an announcement stating that it has recently successfully issued 1 billion yuan of second-tier capital bonds. The funds raised will be used to enrich the company's second-tier capital and increase the capital adequacy ratio.

This morning, statistics from the Financial Federation revealed that according to data from the website of the State Administration of Financial Supervision, at least 9 commercial banks received approval to issue secondary capital bonds during the year, with a cumulative amount exceeding 40 billion yuan.

Sunong Bank announced that the issuance of 1 billion yuan second-tier bonds was completed and just approved in January of this year

Yesterday evening, Sunong Bank announced that the company recently successfully issued the “Jiangsu Suzhou Rural Commercial Bank Co., Ltd. 2024 Secondary Capital Bonds” in the national interbank bond market. The current bond was recorded on May 22, 2024, and issued on May 24, 2024. The issuance scale is RMB 1 billion. The type is a 10-year fixed interest rate bond. The issuer has a conditional redemption right at the end of the 5th year. The coupon interest rate is 2.73%.

This morning, a Financial Services Association reporter made an inquiry and found that on January 5 of this year, the official website of the State Administration of Financial Supervision disclosed the debt issuance information of Sunong Bank mentioned above. The Jiangsu Regulatory Bureau of the State Financial Supervision and Administration stated in its approval that it agreed with Sunong Bank to issue secondary capital bonds of no more than 1 billion yuan. Banks can independently determine the issuance time, batch, and size of secondary capital bonds within the approved amount, and complete the issuance within 24 months after approval. At the same time, Sunong Bank shall report to our bureau and the Suzhou Supervisory Branch of the China Financial Supervisory Authority within 10 days after the collection and issuance of each issue of secondary capital bonds is completed.

Based on this calculation, it can be seen that within 4 months of being approved to issue bonds, Sunong Bank completed the issuance of the current 1 billion yuan secondary capital bond.

The total amount of secondary capital bonds issued during the year has exceeded 400 billion, and 9 banks have been newly approved

According to information, second-tier capital bonds are the main type of commercial bank credit bonds. They are capital supplement bonds. They are mainly used to supplement banks' second-tier capital to meet the requirements of supervisory authorities.

According to Wind data, as of May 20, the total amount of secondary capital bonds issued by commercial banks this year reached 445.75 billion yuan. If we calculate the current Sunong Bank data, the total amount of secondary capital bonds issued by commercial banks since this year has exceeded 446.7 billion yuan.

It should be pointed out that the time for banks to issue secondary capital bonds is not the same as the time for receiving installment bonds. This also means that the secondary capital bonds issued by banks this year may have been approved last year, but only issued this year.

According to the official website of the China Financial Supervisory Authority, the Financial Services Association reporter found that since this year, nine banks, including Sunong Bank, Tianjin Agricultural Commercial Bank, Jiangnan Agricultural Commercial Bank, Putuo Agricultural Commercial Bank, Longjiang Bank, Bank of Lanzhou, Bohai Bank, Guangfa Bank, and Industrial and Commercial Bank, have obtained approval from the supervisory authorities to issue second-tier capital bonds.

Specifically, on January 5, the regulatory website revealed that it was agreed that Jiangsu Suzhou Rural Commercial Bank would issue secondary capital bonds of no more than 1 billion yuan.

On January 22, the regulatory website revealed that it agreed that the Tianjin Agricultural Commercial Bank would issue a quota of not more than 5 billion yuan of second-tier capital bonds, and that the funds raised would be used to supplement the second-tier capital in accordance with relevant regulations.

On January 23, the regulatory website revealed that it agreed that Jiangnan Rural Commercial Bank would issue no more than 6 billion yuan of secondary capital bonds.

On January 30, the regulatory website revealed that it was agreed that Zhejiang Zhoushan Putuo Rural Commercial Bank would issue secondary capital bonds of no more than 500 million yuan and include them in the bank's secondary capital in accordance with relevant regulations.

On March 11, the regulatory website revealed that it was agreed that Longjiang Bank would issue a quota of not more than 5 billion yuan of second-tier capital bonds, and that the funds raised will be used to supplement the second-tier capital in accordance with relevant regulations.

On March 11, the regulatory website revealed that the Bank of Lanzhou agreed to issue secondary capital bonds of no more than 5 billion yuan, and that the funds raised will be used to supplement the secondary capital in accordance with relevant regulations.

On March 29, the regulatory website revealed that it was agreed that Bohai Bank would issue a capital instrument of 15 billion yuan, in the form of second-tier capital bonds.

Furthermore, on April 9, the State Financial Supervisory Administration disclosed that it agreed that Guangfa Bank would issue 76 billion yuan of capital instruments, namely secondary capital bonds and unfixed term capital bonds.

On April 28, the State Financial Supervisory Administration disclosed that it agreed with ICBC to issue RMB 430 billion or equivalent foreign currency capital instruments and non-capital debt instruments with total loss absorption capacity. Among them, the amount of capital instruments is 370 billion yuan or the equivalent in foreign currency. The types include unfixed term capital bonds and secondary capital bonds.

This means that Guangfa Bank and ICBC have also been approved to issue secondary capital bonds, but the exact amount has not been disclosed.