RMB 1.5 Bln Subordinated Bond Issue

Following an approval by People's Bank of China and the China Banking Regulatory Commission, on 24 Oct 2008 the company completed an issuance of RMB 1.5 bln worth of subordinated bonds at a fixed-rate with a 10-year maturity in the interbank bond market.

The company has the option to redeem the bonds at the end of the fifth year. Annual yield on the fixed-rate bonds for the first five years is 5.3%; for the last five years it was 8.3%.

Funds raised from the subordinated bonds issuance will be used to supplement the company's capital.

Board of Directors
29 Oct 2008


Source: Securities Times

Date: 30 Oct 2008

CN01/SC/VW/DM/NK/KM