Chong Hing’s switch capital deal is investor-friendly

Author: | Published: 8 Nov 2010

Lawyers working on Asia’s first switch capital deal have downplayed investors’ concern that the offshore US dollar bond’s regulatory switch feature will create uncertainties in their portfolios.

Chong Hing Bank’s lower tier two (LT2) $225 million subordinated notes include a regulatory switch structure that will upgrade the deal to senior status if bank capital regulations change. It...