Announcement on Completion of Fund Raising on the Mixed Capital Bonds

2007-1-12

The Company and its directors hereby guarantee that the content of information disclosure is real, accurate, complete and free from any false record, misleading representation or material omissions. 

In accordance to the Decision to Permit the Administrative Licensing by The People’s Bank (Yin Shi Chang Zhun Yu Zi [2006] No. 27) and Approval on Issuing the Mixed Bonds by China Minsheng Banking Corp., Ltd. by CBRC (Yin Jian Fu [2006] No. 80), CMBC issued publicly the mixed capital bonds in total amount of 4.3 billion yuan with a term of 15 years. From the date of the tenth year after issuing to the maturity date, upon approval by CBRC, the issuer has the right of one-time redemption of all or part of the bonds issued at their face amount.

The bonds are issued with fixed and floating interest rate, in which bonds of 3.3 billion yuan are issued with fixed rate with the initiating rate set at 5.05%, if the issuer waives the right of redemption, then the interest rate for the 5 years that follows shall be added 300 BP based on the interest rate of the previous 10 years. Floating interest rate bonds will be issued in the amount of 1 billion yuan. The bonds’ coupon rate in a year shall be the sum of the benchmark rate and the quoted spread, in which the benchmark interest rate shall be that for the one-year lump sum deposit and withdrawal savings published by the People’s Bank of China, and the initiating quoted spread shall be 2%. If the issuer waives the right of redemption, then commencing from the 11th interest year, the quoted spread shall increase by 100 BP based on the initiating spread (100 BP=1%) for each interest year.

To 28 December 2006, the 4.3 billion yuan mixed capital bonds have been transferred to the account of CMBC in full amount thus to have completed fund raising through issuing the bonds. In accordance with relevant regulations, the 4.3 billion raised funds are to be calculated into affiliated capital of CMBC.
The Announcement is hereby made by

　　　　　　　　　　　   　                                Board of Directors of China Minsheng Banking Corp., Ltd.
　　　　　　　　　　　　　　　　　　　　　　　　　　　  12 January 2007

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