PSBC smashes records with huge AT1 perpetual bond

Despite its massive size, the $7.25 billion debut issue was trading below water on first day of trading.

State-owned Postal Savings Bank of China PSBC raised $7.25 billion in its first ever US dollar denominated bond sale on Thursday night, in what was the world’s largest additional tier-1 AT1 offering.

The lender broke a number of records. The Reg S is the largest dollar bond offering by an Asian issuer since Alibaba’s $8 billion multi-tranche deal in November 2014, although some bankers argue that the latest debt issuance carries more weight than that of the e-commerce company because it is single-tranche deal.

According to Dealogic, the PSBC transaction surpassed ICBC's renminbi-denominated AT1 bonds in November 2015 as the largest bond ever...

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