Chong Hing launches $300m AT1 bond

The Hong Kong bank's Additional Tier 1 bond was 16x oversubscribed, but credit risk may rise due to recent takeover.

Chong Hing launches $300m AT1 bond
Chong Hing is now 75% owned by Guangzhou-based Yue Xiu Enterprises

Chong Hing Bank raised a capped $300 million perpetual bond callable in year five on Thursday, the second Asian financial institution to sell an Additional Tier 1 note.

The Reg S-registered offering priced at the tighter end of its final guidance at a yield of 6.5%, tightening by 37.5bp from its initial price guidance, indicating buoyant investor support for these Basel III-compliant notes.

“There were a couple of factors that supported...

To continue reading, please login or register for free

Print Edition

FinanceAsia Print Edition

CONFERENCES