ICBC bites the preference share bullet

China’s biggest lender sells $5.7 billion of offshore Additional tier-1 notes in three different currencies, obtaining a staggering $28 billion total order book.

ICBC launched a pioneering triple-currency $5.7 billion additional tier-1 perpetual offering on Wednesday, the second preference share offering by a Chinese financial institution in just over a month.

The Basel III-compliant instrument   an upgrade on Bank of China’s preference share issuance on October 16 was made up of three parts a $2.95 billion note, a Rmb12 billion $2 billion offering and a 600 million $744 million tranche.

The huge $28 billion total orderbook size from over 450 accounts allowed ICBC to press down pricing aggressively on all tranches. Both the US dollar and renminbi notes callable in year five priced at 6%,...

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