China Bad Bank Units Hasten Bond Sales to Take On Toxic Debt
- Bad bank units may swap more bad debt for equity: KMPG
- China banks’ outstanding bad loans rose to record as of June
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Bad bank units of China’s biggest state-owned lenders are racing to sell yuan-denominated bonds as they gear up to take on mounting piles of soured debt.
Agricultural Bank of China Co.’s asset management arm priced a 6 billion yuan ($846 million) bond on Friday for the first time, while Industrial and Commercial Bank of China Co.’s unit plans to sell a 10 billion yuan note in October after issuing a similar amount in March. China Construction Bank Corp.’s unit sold 10 billion yuan of notes in August.