Bocom boosts Tier 1 ratio

China's fifth largest bank becomes the first of the year to raise additional Tier 1 capital in the offshore markets, attracting strong demand.
Strategic stake: Going once, going twice...
Strategic stake: Going once, going twice...

Bank of Communications Bocom on Wednesday became the first Chinese bank this year to raise additional Tier 1 AT1 subordinated bank capital in the offshore markets. 

The Basel III-compliant preference share offering was not as large as ICBC's $2.94 billion transaction from December in terms of issue size or investor demand, but the $2.45 billion deal arguably had a lot more momentum given how subdued market conditions remain.

Bocom's $9 billion book of demand also contrasted sharply with the most recent AT1 deal from Asia - Woori Bank's $500 million deal, which scraped together $1 billion in early June.

...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222