People's Bank of China, Announcement [2006] No.11

中国人民银行公告 [2006] 第11号

Issuance of hybrid capital bonds now requires disclosure of various matters, which include the capital adequacy ratio for the past three years, business position, risk alert, and so on.

Clp Reference: 3700/06.09.05 Promulgated: 2006-09-05

(Issued by the People's Bank of China on September 5 2006.)

(中国人民银行于二零零六年九月五日发布。)

With a view to regulating the issuance of hybrid captial bonds by commercial banks and protecting the interests of investors, pursuant to the PRC People's Bank of China Law and the Measures for the Administration of the Offering of Financial Bonds on the National Interbank Bond Market (the Measures), we hereby announce matters relevant to the issuance of hybrid captial bonds by commercial banks as follows:

为规范商业银行发行混合资本债券行为,保护投资者利益,根据《中华人民共和国中国人民银行法》和《全国银行间债券市场金融债券发行管理办法》(以下简称《管理办法》),现就商业银行发行混合资本债券的有关事宜公告如下:

1. For the purposes of this Announcement, the term “hybrid captial bonds” means bonds with the following characteristics issued by commercial banks:

一、   本公告所称混合资本债券是指商业银行发行的具有以下特征的债券:

(1) Bonds with a term of 15 years or more and that may not be redeemed within 10 years from the date of their issuance. Once those 10 years from date of issuance have elapsed, the issuer has the right to redeem them once. If the issuer does not exercise its right of redemption, it may appropriately increase the coupon rate on such bonds.

(一)  期限在15年以上,发行之日起10年内不得赎回。发行之日起10年后发行人具有一次赎回权,若发行人未行使赎回权可以适当提高混合资本债券的利率。

(2) If the issuer's core capital adequacy ratio is less than 4% before the maturity of the hybrid captial bonds, it may delay the payment of the coupon. If both of the following circumstances arise contemporaneously, the issuer must delay payment of the coupon: the total of its surplus reserve and undistributed profits recorded on its audited balance sheet for the most recent period is a negative number and during the most recent 12 months it has not paid cash dividends to holders of its common shares. Once the conditions for delaying payment of the coupon are no longer satisfied, the issuer shall immediately pay the coupon owed and the compound interest arising thereon.

(二)  混合资本债券到期前,如果发行人核心资本充足率低于4%,发行人可以延期支付利息;如果同时出现以下情况:最近一期经审计的资产负债表中盈余公积与未分配利润之和为负,且最近12个月内未向普通股股东支付现金红利,则发行人必须延期支付利息。在不满足延期支付利息的条件时,发行人应立即支付欠息及欠息产生的复利。

(3) If the issuer is liquidated, the sequence for the discharge of the principal of, and the coupon on, the hybrid captial bonds shall follow general debts and junior debts and precede equity capital.

(三)  当发行人清算时,混合资本债券本金和利息的清偿顺序列于一般债务和次级债务之后、先于股权资本。

(4) If, at the time of maturity of hybrid captial bonds, the issuer does not have the capacity to discharge the debts that have precedence over such bonds in the discharge sequence or if the payment of such bonds would result in the issuer not having the capacity to discharge the debts that have precedence over the hybrid captial bonds in the discharge sequence, it may delay payment of the principal of, and the coupon on, such bonds. Once the aforementioned circumstance ameliorates, the issuer shall continue to perform its obligation of repaying the principal and paying the coupon thereon, and interest on the delayed principal and coupon shall be calculated based on the face coupon rate of the hybrid captial bonds.

(四)  混合资本债券到期时,如果发行人无力支付清偿顺序在该债券之前的债务或支付该债券将导致无力支付清偿顺序在混合资本债券之前的债务,发行人可以延期支付该债券的本金和利息。待上述情况好转后,发行人应继续履行其还本付息义务,延期支付的本金和利息将根据混合资本债券的票面利率计算利息。

2. A commercial bank offering hybrid captial bonds shall satisfy the relevant requirements of Article 7 of the Measures and submit to the People's Bank of China the relevant offer application documents as required in Article 10 of the Measures. Additionally, it shall submit information on its capital adequacy ratio for the most recent three years calculated in line with the requirements of the regulatory department and information on the payment of the principal of, and interest on, other debts.

二、   商业银行发行混合资本债券应符合《管理办法》第七条的有关要求,并按照《管理办法》第十条的要求向中国人民银行报送有关发行申请文件,同时报送近3年按监管部门要求计算的资本充足率信息和其他债务本息偿付情况。

3. hybrid captial bonds may be offered to the public or privately placed. When an issuer offers hybrid captial bonds, it shall disclose its business position in accordance with the relevant provisions of the Measures, as well as information on its capital adequacy ratio for the most recent three years calculated in line with the requirements of the regulatory department and information on the payment of the principal of, and interest on, other debts.

三、   混合资本债券可以公开发行,也可以定向发行。发行人发行混合资本债券应按照《管理办法》有关规定披露其经营情况以及近3年按监管部门要求计算的资本充足率信息和其他债务本息偿付情况。

4. The issuer shall issue a risk alert in its prospectus and offer announcement that shall stress the discharge sequence of hybrid captial bonds and the risks of a delay in payment of the coupon prior to maturity and of a delay in payment of the principal and coupon at the time of maturity.

四、   发行人应在募集说明书、发行公告中进行风险提示,重点说明混合资本债券的清偿顺序和到期前利息延期支付、到期时本金和利息延期支付的风险。

5. A credit rating assessment shall be required for both public offerings and private placements of hybrid captial bonds. During the life of hybrid captial bonds, the credit rating agency shall conduct regular and ad hoc follow-up ratings of the hybrid captial bonds, and issue a follow-up rating report once each year and follow-up rating information once each quarter. The credit rating agency shall issue follow-up rating reports in a timely manner in respect of material events that have an impact on the issuer's performance of its debt obligations.

五、   混合资本债券公开发行和定向发行均应进行信用评级。在混合资本债券存续期内,信用评级机构应定期和不定期对混合资本债券进行跟踪评级,每年发布一次跟踪评级报告,每季度发布一次跟踪评级信息。对影响发行人履行债务的重大事件,信用评级机构应及时提供跟踪评级报告。

6. If an issuer is, in accordance with provisions, to redeem hybrid captial bonds early, to delay payment of the coupon or, at the maturity of the hybrid captial bonds, to delay payment of the principal and coupon, it shall report the same to the People's Bank of China for the record five working days in advance, publicly disclose the same on the ChinaMoney website and the ChinaBond website and disclose the same as a material accounting event in its annual financial report.

六、   发行人按规定提前赎回混合资本债券、延期支付利息或混合资本债券到期延期支付本金和利息时,应提前5个工作日报中国人民银行备案,通过中国货币网、中国债券信息网公开披露,同时,作为重大会计事项在年度财务报告中披露。

7. The issuer shall disclose financial information on a quarterly basis during the life of hybrid captial bonds. If the hybrid captial bonds were issued by a public offering, the issuer shall, at the time of payment of the coupon on the bonds, publicly disclose information on its capital adequacy ratio and information on the payment of the principal of, and interest on, other debts, and, as a listed commercial bank, shall additionally disclose information on the payment of dividends on its common shares.

七、   混合资本债券存续期内,发行人应按季度披露财务信息。若混合资本债券采取公开发行方式发行,发行人应在债券付息时公开披露资本充足率信息和其他债务本息偿付情况,作为上市公司的商业银行还应披露其普通股红利支付情况。

8. An investor in hybrid captial bonds shall be fully aware of, and shall itself bear, the risks attaching to investments in hybrid captial bonds. When an investor intends to invest in hybrid captial bonds, a written authorization document consenting to the investment in the hybrid captial bonds issued by the authority body specified in the company's articles of association or charter document shall be required and the intent shall be reported to the National Interbank Borrowing Centre for the record. The authorization document shall state that the institution understands the risks attaching to hybrid captial bonds and that it has the relevant internal controls and risk management capabilities.

八、   混合资本债券投资人应充分认识并自行承担投资混合资本债券所带来的风险。投资人投资于混合资本债券,应由公司章程或章程性文件规定的权力机构出具同意投资混合资本债券的书面授权文件,并报全国银行间同业拆借中心备案,授权文件内容应包括:本机构了解混合资本债券的风险;本机构有相应的内控制度和风险管理能力。

9. The quantity of hybrid captial bonds issued and the method by which the proceeds are recorded as supplementary capital shall be handled in accordance with the relevant requirements of the regulatory department.

九、   混合资本债券的发行数量及所筹资金计入附属资本的方式按照监督部门有关要求执行。

10. Any matters not covered herein shall be handled in accordance with the relevant provisions of the Measures.

clp reference:3700/06.09.05 promulgated:2006-09-05

十、   本公告未尽事宜按《管理办法》的有关规定执行。

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