BOC sells landmark $6.5b bank capital note

Lender raises the largest ever dollar-denominated bank capital offering, building up capital cushions to counter China’s mounting bad debt problem.

BOC sells landmark $6.5b bank capital note

Bank of China has raised a $6.5 billion Basel III-compliant Additional Tier 1 note the biggest single tranche dollar-denominated bank capital sale ever boosting much-needed capital buffers to counter China’s growing non-performing loans issue.

The bond the first offshore preference share offering from a Chinese company received a whopping order book of $21.8 billion from more than 200 accounts, according to a source close to the deal. This enabled the issuer to tighten its...

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