China Merchants Bank builds buffer vs bad debt with AT1

The Shenzhen-based lender manages to sell an aggressively-priced $1 billion deal to investors, even as a surge in lending worries regulators.

China Merchants Bank builds buffer vs bad debt with AT1

China Merchants Bank, a Shenzhen-based lender, raised $1 billion from the sale of a perpetual non-call five-year additional tier-1 bond on Thursday, building a capital buffer against the growth of bad debt in what seems a politically smart move.

The Reg S deal comes at the time when China's political heavyweights are attending the biggest political event in five years in Beijing, the 19th communist party congress.

One of the widely-discussed...

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