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Bank of China Leads Way for Libor Successor in Asia Bonds

  • Bank of China bond to use Secured Overnight Financing Rate
  • The lending giant becomes the first in Asia to use SOFR
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One of China’s biggest lenders is marketing a new dollar note linked to a Libor replacement, as borrowers across the globe move away from the scandal-ridden pricing benchmark.

Bank of China Ltd.’s Macau Branch is expected to price a floating-rate note tied to the Secured Overnight Financing Rate (SOFR) on Wednesday, according to a person familiar with the matter. Once priced, this would be the first foreign-currency bond from a Chinese issuer linked to SOFR, according to data compiled by Bloomberg.