Adds details from report, background
April 14 (Reuters) – China’s biggest banks are planning at least 40 billion yuan ($5.8 billion) of bond sales to plug a major fund shortfall ahead of a 2025 deadline to meet global capital requirements, Bloomberg News reported on Friday.
Industrial and Commercial Bank of China Ltd 601398.SS and three other banks are planning to sell a new category of total loss-absorbing bonds in the domestic debt market as early as June, the report said, citing people familiar with the matter.
Each bank is targeting at least 10 billion yuan ($1.46 billion), however exact amounts have not been finalised, the report added.
The development comes at a time when Asian policymakers are scrambling to calm investor nerves about Additional Tier-1 (AT1) bonds after holdings of such bonds of Credit Suisse CSGN.S were written down to zero.
Industrial and Commercial Bank of China could not be immediately reached for comment.
($1 = 6.8677 Chinese yuan renminbi)
(Reporting by Chandni Shah in Bengaluru; Editing by Muralikumar Anantharaman)
((Chandni.shah@thomsonreuters.com;))
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