New Issue: Postal Savings Bank of China prices $7.25 billion 4.5% preference shares

New York, Sept. 21 – Postal Savings Bank of China Co., Ltd. priced $7.25 billion of 4.5% non-cumulative perpetual offshore preference shares at par, according to a notice from the issuer.

On the first reset date of Sept. 27, 2022 and every five years subsequently, the dividend steps up to five-year Treasuries plus 263.4 basis points.

China International Capital Corp., Hong Kong Securities Ltd., Goldman Sachs (Asia) LLC, J.P. Morgan Securities plc, UBS AG Hong Kong Branch, Morgan Stanley & Co. International plc, Merrill Lynch International, Industrial and Commercial Bank of China (Asia) Ltd., Haitong International Securities Co. Ltd., Hongkong and Shanghai Banking Corp. Ltd. and DBS Bank Ltd. were joint global coordinators and also joint bookrunners and joint lead managers along with CCB International Capital Ltd., CLSA Ltd., Ping An of China Securities (Hong Kong) Co. Ltd., Standard Chartered Bank, Huarong International Securities Ltd., BOCI Asia Ltd., China Merchants Securities (HK) Co., Ltd., Crédit Agricole Corporate and Investment Bank, Deutsche Bank AG, Hong Kong Branch, ABCI Capital Ltd., SinoPac Securities (Asia) Ltd. and ICBC International Securities Ltd.

The preference shares will qualify as Additional Tier 1 capital. Proceeds will be used to replenish the bank’s Additional Tier 1 capital, to improve its capital structure and to support future business development.

Postal Savings Bank can call the preference shares on the first reset date and any subsequent dividend payment date at the liquidation preference plus accrued interest up to but excluding the redemption date.

Postal Savings is a Beijing-based bank.

Issuer:	Postal Savings Bank of China Co., Ltd.
Issue:	Offshore preference shares
Amount:	$7.25 billion
Maturity:	Perpetual
Dividend:	4.5%, resets on Sept. 27, 2022 and every five years to five-year Treasuries plus 263.4 bps
Price:	Par of $20
Call:	On Sept. 27, 2022 and any subsequent dividend payment date at par
Bookrunners:	China International Capital Corp., Hong Kong Securities Ltd., Goldman Sachs (Asia) LLC, J.P. Morgan Securities plc, UBS AG Hong Kong Branch, Morgan Stanley & Co. International plc, Merrill Lynch International, Industrial and Commercial Bank of China (Asia) Ltd., Haitong International Securities Co. Ltd., Hongkong and Shanghai Banking Corp. Ltd. and DBS Bank Ltd. (global coordinators), CCB International Capital Ltd., CLSA Ltd., Ping An of China Securities (Hong Kong) Co. Ltd., Standard Chartered Bank, Huarong International Securities Ltd., BOCI Asia Ltd., China Merchants Securities (HK) Co., Ltd., Crédit Agricole Corporate and Investment Bank, Deutsche Bank AG, Hong Kong Branch, ABCI Capital Ltd., SinoPac Securities (Asia) Ltd. and ICBC International Securities Ltd.
Rating:	Moody’s: Ba3
Pricing date:	Sept. 21
Settlement date:	Sept. 27
Distribution:	Regulation S

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