Chinese bank issues first Basel III-compliant bond

A small rural commercial bank becomes the first lender to raise Basel III-compliant capital through a $244 million tier-2 bond.

Chinese bank issues first Basel III-compliant bond

Tianjin Binhai Rural Commercial Bank TBRCB has raised Rmb1.5 billion $244 million by pricing the country’s first Basel III-compliant bond last night, setting a template and testing investor appetite for a further $38 billion of issuance from the industry, including the big four lenders.

The tier-2 bond, which has a 10-year maturity and is callable after five years, attracted good response and was finally 1.27 times covered despite the unfamiliar structure. Demand reached more...

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