S&P assigns A+ rating to proposed Agricultural Bank of China RMB bond issue

May 17, 2019

HONG  KONG  - S&P Global Ratings today assigned its 'A+' long-term issue rating to the Chinese renminbi-denominated bond that Agricultural Development Bank of China proposes to issue.

The senior unsecured fixed-rate bond issue consists of two tranches: one will be of three years tenor and available for institutional investors only, the other of one-year tenor and available for both institutional and retail investors.

The combined issue size will not exceed US$1.5 billion.

S&P said the issue rating is subject to its review of the final issuance documentation.

"The rating on the bond reflects our issuer credit rating on Agricultural Development Bank of China," S&P says.

"The bond constitutes direct, unconditional, unsubordinated, and unsecured obligations of the issuer, and will at all times rank equally among these obligations and at least pari passu with all other present and future unsubordinated and unsecured obligations of the issuer from time to time (except for any statutory preference or priority applicable in the winding-up of the issuer).

Agricultural Development Bank of China intends to use the proceeds to fund its general credit business, working capital, and for general corporate purposes in China.