The write-down terms for Additional Tier 1 (AT1)
products are becoming standardised in Asia’s two
largest jurisdictions, but banks in both countries will need to
look offshore to raise Tier 1 capital according to Fitch.
The first quarter of 2015 was relatively quiet for
offshore sales of Basel III-compliant bonds from Chinese banks.
China Construction Bank became the first to come to market this
year with a $2 billion deal – the largest Tier 2 from
a Chinese bank yet. It listed on the Hong Kong Exchange on May 14.
Indian banks, however, have not yet gone offshore
– but they’ll need to do so in order to
raise adequate Tier 1 capital.
According to Fitch’s Banks AT1 tracker, which
was released earlier this month, both Indian and Chinese banks