Dollar AT1 volume to come under pressure as PBoC clarifies terms

The People’s Bank of China (PBoC) updated its regulations on capital bonds last week, encouraging lenders to supplement their capital with new issuance and start getting ready to comply with international standards on meeting total loss absorption capacity (TLAC) requirements. But it also clarified loss absorption terms — a move that may impact offshore additional tier one volumes from the Mainland.

  • By Addison Gong
  • 05 Mar 2018

The 11-point notice on the central bank’s website, published last Tuesday, included encouraging financial institutions to issue new types of capital supplementary bonds with innovative loss absorption mechanisms, and explore issuance that expand their TLAC. 

Moody’s highlighted this week the PBoC’s official reference to TLAC, which signals that ...

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Panda Bonds Top Arrangers

Rank Arranger Share % by Volume
1 China Merchants Securities Co 15.31
2 Industrial and Commercial Bank of China (ICBC) 12.35
3 CITIC Securities 8.92
4 Agricultural Bank of China (ABC) 7.60
5 China CITIC Bank Corp 6.76

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Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Goldman Sachs 17,340.89 84 7.58%
2 Morgan Stanley 14,411.26 72 6.30%
3 Citi 14,337.79 96 6.27%
4 UBS 13,054.43 87 5.71%
5 China International Capital Corp Ltd 11,355.46 47 4.96%

Bookrunners of Asia Pacific (ex-Japan) G3 DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 25,595.68 221 7.66%
2 Citi 23,431.57 157 7.01%
3 JPMorgan 15,663.09 97 4.69%
4 Goldman Sachs 13,751.52 67 4.12%
5 Bank of America Merrill Lynch 13,338.92 85 3.99%

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