On May 11, the Postal Savings Bank of China (hereinafter referred to as PSBC) issued its first tranche of tier-2 capital bonds in 2023 in China’s interbank bond market. The bonds issued in the amount of 20 billion yuan (about 2.84 billion US dollars) have a tenure of 15 years (during which the issuer has the right to redeem them at the 10th anniversary of the issuance), and bear a fixed interest rate of 3.39 percent. The successful issuance of the tier-2 capital bonds is of great significance for PSBC to further optimize its capital structure, reinforce its capital strength and enhance its capabilities to fend off risks.

PSBC adhered to the market-oriented principles, responded actively to market allocation requirements for high-quality assets and gave full play to its advantages in interbank ecosystem in issuing the tier-2 capital bonds, which, therefore, were actively subscribed by the investors. Eventually, about 80 institutions have participated in the subscription, with the subscribed amount surpassing by 2.7 times. The subscribers include large state-owned banks, joint-stock banks, city commercial banks, rural commercial banks, insurance companies, securities companies, fund companies, wealth management subsidiaries of banks and overseas institutions, which fully reflects that the investment value of PSBC has been highly recognized by diverse professional investors.