Gremlins at the bank capital gates

Teething issues blight many debut bank capital deals, including Bank of China's recent $6.5b offering, but such problems are unlikely to last.

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...

¬ 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 subscription (2-5 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 subscription (2-5 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