6 billion deal by HSBC in September

Bank of China canada goose bolsters https://www.getcanadagooseoutlet.ca balance sheet with

HONG KONG (Reuters) Bank canada goose coats on sale of China (BoC) on Thursday sold $6.5 billion Canada Goose Parka worth Canada Goose online of contingent capital, launching a landmark wave of fundraising by China biggest banks as they strengthen their Canada Goose Outlet balance sheets to meet new global bank capital rules.

A canada goose outlet store locations man is silhouetted in front of a Canada Goose Coats On Sale Bank of China’s logo at its branch office in Beijing July 14, 2014. REUTERS/Kim Kyung Hoon

It is the first time a Chinese bank has issued so called additional Tier 1 canada goose black friday sale preference shares, instruments Canada Goose Jackets which behave like bonds and convert into common equity canada goose store if Canada Goose sale the bank core capital falls below certain trigger ratios.

It is also the world largest ever contingent capital deal, beating a $5.6 billion deal by HSBC in September.

As growth slows and canada goose clearance bad debts build up, China banks canada goose replica are canadian goose jacket rushing to replenish their balance sheets to meet the tough new global bank capital regulations known as Basel III.

This deal follows a wave of similar issuance canada goose outlet toronto factory by European banks earlier this year.

China four biggest lenders are expected to issue $20 billon worth of additional Tier 1 canada goose coats and Tier 2 capital by the end of the year, according to Fitch Ratings.

The Chinese government has canada goose deals been rigorously enforcing cheap Canada Goose Basel III regulations in its efforts to ward off canada goose outlet vancouver a financial crisis following a huge run up in debt since 2008 and a marked slowdown in the economy.

BoC said the preference shares would yield 6.75 percent, within 2018 canada goose outlet the range expected by investors. Investors in these Canada Goose Online kind of preference shares demand a premium over straight bonds from the same issuer, for the additional risk that their securities may be converted into canada goose clearance sale common shares in times of stress for the bank.

BoC on Aug 14. said it received regulatory buy canada goose jacket approval to issue up to $16 billion worth of preference shares.

Bank of China International led the deal, along with BNP Paribas, China Merchants buy canada goose jacket cheap Securities (HK), Citigroup, CITIC Securities International, Credit Suisse, HSBC, Morgan Stanley and Standard Chartered.

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