3 big Chinese banks to issue 63.5b yuan in bonds on same day
Three of China's biggest banks will issue a total of 63.5 billion yuan (HK$80 billion) in second-tier bonds tomorrow as the mainland banking sector recapitalises in the face of increasing economic risk.
Three of China's biggest banks will issue a total of 63.5 billion yuan (HK$80 billion) in second-tier bonds tomorrow as the mainland banking sector recapitalises in the face of increasing economic risk.
Agricultural Bank of China, the mainland's fourth-largest bank by assets and outstanding loans, will issue 30 billion yuan in 10-year bonds, the first tranche of a total of 50 billion yuan approved by the government late last month, according to mainland media.
Issuing fixedincome bonds [is] fairly reasonable and not unexpected
China Construction Bank, the mainland's second-biggest bank, plans to issue 20 billion yuan in 15-year bonds, and unlisted policy bank Export-Import Bank of China will issue 13.5 billion yuan in second-tier 10-year bonds, the reports said.
China Construction Bank issued US$5 billion in dollar-denominated 10-year Basel-III bonds on Wednesday at a yield of 300 basis points over US treasuries, according to a term sheet seen by the South China Morning Post.
On Tuesday, Bank of China completed an issuance of 30 billion yuan in 10-year tier-two bonds at a yield of 5.8 per cent, according to Chinese media.
The flurry of debt issuances this week is likely a coincidence, analysts said.