Bank of Zhengzhou adds to wave of Chinese AT1 debt

The Chinese city lender joins borrowers issuing regulatory-compliant capital, tapping into robust investor demand for an extra shot of yield.

Bank of Zhengzhou adds to wave of Chinese AT1 debt

Bank of Zhengzhou, a Chinese commercial lender, raised $1.19 billion from the sale of a Basel III-compliant additional tier 1 bond this week, underscoring a growing appetite among Chinese lenders to issue the bank debt.

The bank’s maiden AT1 deal followed Postal Savings Bank’s sale of the instruments last month, which are used to recapitalize a bank’s capital structure and avoid the risk of using taxpayer’s money for a bail-out in the event...

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