ICBC Asia successfully raised a $500 million 10-year Basel III-compliant Tier 2 subordinated note with a coupon of 4.5% on Thursday night, despite concerns that the debt is seen as riskier than other offerings in the market.
The deal has a one-time issuer call option on October 10, 2018, with the call subject to a prior written consent from the Hong Kong Monetary Authority HKMA. The interest will be fixed for the first five years and then reset at the then prevailing five-year US Treasury yield plus the initial spread.
The paper was priced at 315bp above Treasuries, much tighter than its initial price guidance...
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