Bank of East Asia seals $650m AT1 issue

Bank of East Asia raised a $650 million perpetual, non-call 5-year AT1 bond on Wednesday, priced at 5.5%, with Citi and UBS acting as joint bookrunners on the deal.

The Ba2 rated, Basel III-compliant transaction helps the Hong Kong bank to shore up its capital base with additional tier-1 capital.

BEA issued a $500 million hybrid tier-1 capital back in 2009 but as the issuance was made prior to more recent Basel III additional tier-1, or AT1, qualifications, the bank sought to replenish its capital under the new standards.

Bankers on the new bond said the old deal...