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Investors pile in to Chinese CoCo 

October 20, 2014
Lianting Yu, IFR

Bank of China’s inaugural offering of Basel III-compliant Additional Tier 1 preference shares drew a surprisingly high level of interest after formally announcing a roadshow on Wednesday ahead of a jumbo issuance of as much as US$6.5bn.

As of Thursday afternoon, the state-owned bank had received an impressive US$17bn in indications of interest, according to two market sources.

The leads has been informally marketing the landmark Reg S deal in the past few months, and wide coverage from analysts and the press has helped investors understand the novel loss-absorption instruments in Asia.

Two teams are currently on the road to conduct formal investor meetings in Asia and Europe. The Asian team will hit Hong Kong on Monday and Tuesday, while the European team will be in London on Monday, in Paris and Frankfurt on Tuesday.

The bank has announced that the deal will likely be settled in dollars and/or euros. 

Read more: IFR


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