StanChart-Backed Bohai Bank to Sell $3.5 Billion in Loans

  • StanChart has taken impairments of $1.46 billion on Bohai Bank
  • Chinese lenders are struggling with rising levels of bad debt
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China Bohai Bank Co., partly owned by Standard Chartered Plc, proposed to sell $3.5 billion worth of assets at a discount to bidders including the nation’s bad debt managers to shore up capital levels.

The assets, with a principal amount of 25.6 billion yuan ($3.5 billion), will be disposed of in a public tender to potential bidders, including China’s big four bad banks led by China Cinda Asset Management Co., according to an exchange filing on Monday.