ICBC $5.6bn coco sale includes largest yet offer of offshore RMB bonds

Industrial and Commercial Bank of China (1398.HKG) plans to issue a tranche of euro-denominated contingent convertible bonds as part of a US$5.6 billion deal in Hong Kong that will also include a tranche of RMB12 billion, The Financial Times reported, citing an unnamed banker involved in the deal. The euro offering of EUR600 million is the first by a Chinese bank, and the yuan tranche is the largest offer of offshore renminbi bonds to date. The contingent convertible bonds count as capital under global rules known as Basel III, which China’s bank regulator is aggressively implementing in a bid to fortify banks’ balance sheets against an expected rise in bad loans.