Bank of China successfully issued a free-trade offshore bond, worth RMB 500 million. The nine-month-term bond, issued at a coupon rate of 1.6%, is the first free-trade offshore bond issued in the European market, and also the first innovative practice by a European issuer to introduce free trade accounting unit (FTU) investors in a free-trade offshore bond.

BOC's Frankfurt Branch served as the issuer, while BOC's Hong Kong Branch, Bank of China (Hong Kong) Limited, and BOC International Holdings Limited acted as joint lead global coordinators. The Shanghai Clearing House provided registration and custody services for the bond.

The issuance drew active subscriptions from overseas investors, reflecting international capital market recognition of BOC's overall strength and credit standing. It also demonstrated BOC's strength in diversified financing and will help European enterprises and financial institutions broaden their RMB financing channels.

Free-trade offshore bonds, formally known as free-trade-zone offshore bonds, are important cross-border debt financing tools launched under the innovative account system of the Shanghai Pilot Free Trade Zone. They follow the principle that both the issuing and investing ends are overseas and complement offshore US dollar bonds and offshore RMB bonds, also known as Dim Sum bonds, to form a multi-layered and complementary offshore financing system for Chinese institutions. 

An FTU is a dedicated free-trade accounting unit opened by domestic financial institutions within banks for offshore business and investment. The first introduction of FTU investors was the core breakthrough in this issuance, further broadening the investor base and promoting the international use of RMB.

BOC will continue to leverage its global service network to diversify its free-trade offshore bond products and issuer types. By continuing to deepen innovation in cross-border investment and financing products, BOC will contribute more financial strength to advancing the international use of RMB and supporting high-level economic and trade cooperation between China and Europe.