Bank of China Readies First Perpetual Amid Capital Pressure
- Indicative pricing range at 4.5%-4.8%, no coupon step-up
- More Chinese lenders will tap the new instrument: Moody’s
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Bank of China Ltd. is set to offer the first perpetual bonds from a Chinese lender on Friday, a landmark deal that will pave the way for similar fundraising from financial institutions.
The bank is looking to issue as much as 40 billion yuan ($5.9 billion) of perpetual bonds to replenish additional tier 1 capital, it said in a filing. China’s financial regulators last year called for more innovative capital instruments to expand funding channels for banks in order for them to boost support to the real economy.