While the Development Bank of Singapore DBS has twice used subordinated debt to re-balance its capital base, Bank of East Asia's BoEA's $550 million deal marks the first time an Asian bank has used such a structure to re-finance capital depleted through an acquisition, in this case First Pacific Bank FPB.
The successful completion of the 10 non-call, five lower tier 2 deal means that the bank has been able to boost capital adequacy ratios from marginally under 15% back up to19%, with tier 1 capital has staying constant throughout at 13%. Hong Kong banks maintain some of the highest capital ratios worldwide and as a result of...
