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 is now 75% owned by Guangzhou-based Yue Xiu Enterprises
Chong Hing is now 75% owned by Guangzhou-based Yue Xiu Enterprises

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 Chong Hing’s price its strong road show, the capped sized and the fact that it’s one of the very few Hong Kong banks that is rated by the HKMA,” said the source, adding that...

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