Changchun Development Rural Commercial Bank temporarily suspends interest payments on a Tier 2 capital bond: The reform work of rural credit risk is progressing in an orderly manner.

AI · Under Rural Credit Reform, how are bondholders’ rights and interests protected when bond interest payments are temporarily deferred?

On March 30, Pengpai News exclusively learned that a financial institution received an announcement from Changchun Development Rural Commercial Bank Co., Ltd., issued on March 25: Announcement on Temporarily Postponing the Payment of Interest on the “21 Changchun Development Rural Commercial Secondary” Bonds. It will postpone the payment of the current-period interest on this bond; meanwhile, this bond will not be redeemed.

“21 Changchun Development Rural Commercial Secondary” is a Tier 2 capital bond issued on March 30, 2021, with bond code: (, bond code: 2121008.IB, with an issuance size of RMB 600 million. The coupon rate for this interest period is 5.80%, the bond term is 10 years, and the issuer has a redemption option at the end of the fifth year.

The most recent interest payment date for this bond is March 30. The announcement states that, at present, Changchun Development Rural Commercial Bank is advancing reform and risk-mitigation work in accordance with relevant arrangements, therefore the payment of the interest on the “21 Changchun Development Rural Commercial Secondary” bond is being postponed.

In addition, another announcement simultaneously issued by Changchun Development Rural Commercial Bank shows that the issuer will not exercise the redemption option for this bond for the current period.

Staff at Changchun Development Rural Commercial Bank told Pengpai News that the work of rural credit reform and risk mitigation is progressing in an orderly manner. There is no clear timetable yet, but they have already established contact with bondholders, and any new developments will be communicated to the bondholders.

A Tier 2 capital bond refers to a bond issued by commercial banks in accordance with regulatory requirements such as the Trial Measures for Capital Management of Commercial Banks (Trial), to supplement the bank’s Tier 2 capital. Its main role is to absorb losses during bank bankruptcy liquidation, thereby reducing the government’s rescue costs and other negative social impacts caused by bankruptcy.

According to the Trial Measures for Capital Management of Commercial Banks, for Tier 2 capital instruments issued by commercial banks, the amount that can be included in Tier 2 capital in the last five years before the maturity date shall be gradually reduced year by year in proportions of 100%, 80%, 60%, 40%, and 20%.

Changchun Development Rural Commercial Bank has now officially been placed under the management of Agricultural Bank. On September 29, 2025, the Jilin Regulatory Bureau of the National Financial Regulatory Administration issued the Reply of Jilin Financial Regulatory Bureau on Approving Changes of Names for 57 Institutions Including the Chaoyang Branch of Changchun Development Rural Commercial Bank Co., Ltd..

According to Rural Financial Times, behind the name change is a major adjustment in the management affiliation of banks such as Changchun Development Rural Commercial Bank—transferring its management to Agricultural Bank—not a single institutional name-change action. It is an important step in the process of rural credit reform and risk mitigation.