Teething issues are bound to crop up in debut bank capital deals and even the biggest issuers can fall foul of gremlins, including Bank of China’s recent preference share transaction.
Although viewed as a landmark deal, BOC’s mammoth $6.5 billion Additional Tier 1 offering raised mid-October experienced some technical issues a few days after it was launched.
The error began from the start in terms of how it was set up, said a Singapore-based fixed income trader who is trading BOC’s notes to FinanceAsia. While the structuring of the dollar-denominated AT1 bond is straightforward, the snag is that the instrument is linked...
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