State-controlled China Railway Construction Corp is tapping into new-found investor enthusiasm for hybrid debt securities that will allow it to raise new debt capital, yet have it treated as equity for accounting purposes.

Hong Kong-based First Equity Finance and Singapore-based IFA Capital are raising US$120 million through insurance-backed bonds for two mainland firms.

The big three ratings agencies have taken their licks. First came the governance scandals of the 2000s, when they failed to catch a massive accounting fraud by the likes of Enron and WorldCom.

Related Topics
No Related Topics