SHANGHAI: Industrial & Commercial Bank of China (Asia) Ltd plans to sell as much as US$1bil of dollar-denominated Basel III bonds, a person familiar with the matter said.
The Hong Kong-based unit of the world’s biggest bank by assets plans to issue the so-called additional Tier 1 perpetual securities at a yield of around 4.375%, according to the person familiar with the offering, who isn’t authorised to speak publicly and asked not to be identified. Additional Tier 1 capital includes securities that rank below most subordinated debt.
“More Chinese financial institutions will come offshore to sell additional Tier 1 bonds this year as the economy slows and non-performing loans rise,” said He Xuanlai, a credit analyst at Commerzbank AG in Singapore. – Bloomberg