CHINA RAILWAY (00390) has announced plans to issue the first tranche of its 2026 Science and Technology Innovation Perpetual Corporate Bonds, targeting professional investors. The total issuance amount for this tranche will not exceed 2 billion yuan, inclusive. These bonds are perpetual corporate bonds with a base term of five years. The term is structured in five-year cycles, and at the end of each cycle, the issuer has the right to extend the bond's term by an additional cycle (five years) or to fully redeem the bond at maturity. The interest accrual for this bond series will commence on April 20, 2026. The bonds will carry a fixed interest rate, with simple annual interest calculation and no compounding. In the event of interest payment deferrals, any deferred interest will accumulate during the deferral period at the current coupon rate. The coupon rate for the initial cycle will be determined through consultation between the issuer and the lead underwriter based on the results of offline bookbuilding, and it will remain fixed for the first cycle. The rate will be reset at the beginning of each subsequent cycle. The initial cycle's coupon rate will be set as the initial benchmark rate plus the initial spread. For later cycles, the coupon rate will be adjusted to the prevailing benchmark rate plus the initial spread, plus an additional 150 basis points. The initial spread is defined as the initial coupon rate minus the initial benchmark rate. Should the prevailing benchmark rate become unavailable on a reset date due to factors such as changes in macroeconomic conditions or policies, the benchmark rate from the previous period will be applied.