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 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...

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