Bank of China Plans 1st Bad Loan Securitization Since 2008
- Plans to sell 301 million yuan of bonds backed by bad assets
- Slowing economic growth has led to surge in soured debt
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Bank of China Ltd. is planning to sell bonds backed by non-performing assets, reviving a type of financing that would give the nation’s lenders another way to remove a growing pile of bad loans from their books.
The lender plans to sell 301 million yuan ($46 million) of the debt, according to a statement Thursday. The sale, which would be the first for this type of deal since 2008, is scheduled for May 26, it said. Regulators will allow domestic banks to issue up to 50 billion yuan of such asset-backed securities, people familiar with the matter said in February.