China Railway (00390) plans to issue RMB 2 billion in perpetual corporate bonds.

China Railway (00390) announced that the company plans to issue publicly offering technology innovation renewable corporate bonds (first tranche) for professional investors in 2026. The total amount of this bond issuance will not exceed RMB 2 billion, and it is a renewable corporate bond with a base term of 5 years. Interest is calculated every 5 years as 1 cycle, at the end of each cycle, the issuer has the right to choose to extend the bond term by 1 cycle (i.e. extend by 5 years), or choose to fully redeem the bond at the end of the cycle. The interest start date for this bond is April 20, 2026. This bond is in the form of fixed interest rates, with annual simple interest calculation and no compound interest. If there is a deferral, each deferred interest will accumulate at the current face interest rate during the deferral period. The face interest rate for the first cycle of this bond will be determined by the issuer and the lead underwriter based on the results of the off-market inquiry book within the face interest rate inquiry range, and will remain fixed within the first cycle, resetting once for each subsequent cycle. The face interest rate for the first cycle is the initial benchmark interest rate plus the initial spread, and the face interest rate for the subsequent cycles will be adjusted to the current benchmark interest rate plus the initial spread plus 150 basis points. The initial spread is the face interest rate of the first cycle minus the initial benchmark interest rate. If in the future, factors such as macroeconomic and policy changes make it impossible to obtain the current benchmark interest rate on the interest reset date, the previous benchmark interest rate will be used until the interest reset date.