CCB Asia fine-tunes Tier 2 format

摘要

China Construction Bank's Hong Kong unit last week offered more clarity on the preferred format for bank capital with a debut US dollar offering of Basel Ⅲ-compliant Tier 2 bonds. Ccb asia's US$750m 10-year non-call five bond came with features that made investors more comfortable buying the loss-absorbing subordinated bonds, and was better received than a similar US$500m offering from peer ICBC Asia last November. With CCB Asia's bonds, only the Hong Kong Monetary Authority has authority to declare the bank to be non-viable, an event that could cause bondholders to absorb losses. ICBC Asia's offering, meanwhile, gave that power to two PRC regulators, the People's Bank of China and the China Banking Regulatory Commission, as well as the HKMA, allowing the notes to count towards regulatory capital onshore.