The Hong Kong branch of Taiwan's Fubon Bank and Industrial and Commercial Bank of China Asia both hit the market with subordinated lower tier-2, 10-year issues on Monday night.
Fubon Bank Hong Kong raised $200 million and became the fifth issuer globally to print a bond with a regulatory switch since Credit Agricole priced the first bond using that structure in mid-October. Meanwhile, ICBC Asia decided to opt for a $500 million 10-year bullet issue with no regulatory call or switch.
The switch structure was introduced in anticipation of potential changes in the dynamics of lower tier-2 capital as a result of Basel III. The structure allows investors to hold on to a...
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