ICBC Asia’s USD Basel III-compliant Tier 2 bond first explained

Author: Ashley Lee | Published: 30 Oct 2013
  • ICBC Asia’s USD-denominated Basel III-compliant Tier 2 offering was the first international Tier 2 offering by an Asian bank;
  • The issuance set a pricing benchmark for Asian banks’ future Tier 2 offerings in the international market;
  • ICBC Asia’s deputy CEO revealed that the bank was looking to complete another innovative issuance following its Basel III-compliant CNH bonds in 2011, which were the first Basel III-compliant bonds in Asia;
  • The notes count as Tier 2 regulatory capital under the Hong Kong Monetary Authority’s (HKMA) Basel III regulations, and are likely to count as Tier 2 regulatory capital for ICBC’s parent, ICBC, under China Banking Regulatory Committee’s (CBRC’s) regulations. The bonds can be written off at either regulator’s discretion.

On October 3, ICBC...