China Banks Plan $29 Billion in Bond Sales to Replenish Capital
- ICBC, Bocom, Guangfa among banks planning bond sales
- Perpetual, Tier-2 bond sales may reach 1 trillion yuan
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Chinese banks are planning near record bond sales this month to replenish capital levels weakened by a surge in cheap loans to struggling businesses and sliding earnings.
Industrial & Commercial Bank of China Ltd., the world’s largest lender, and three domestic competitors plan to sell a combined 195 billion yuan ($28.5 billion) of perpetual or tier-2 capital bonds in September, said people working on the plans who asked not to be named discussing internal matters. Their issuance alone would amount to the second highest monthly sales ever in China, according to data compiled by Bloomberg.