China Minsheng Banking Corp, announced on Monday the hire of CMBC International, CMBC Hong Kong branch, Goldman Sachs, ICBC International and UBS as joint global co-ordinators for an additional tier one (AT1) perpetual non call five.
The Chinese bank, rated BBB by S&P, received the go-ahead from from the China Securities Regulatory Commission (CSRC) to issue no more than Rmb100m preference shares last Friday. ABC International, Barclays, BoCom International, China Everbright Securities (HK), CICC Hong Kong, Haitong International, Huarong Financial and Zhongtai International are also on the trade.
Fixed income investors meeting will be held in Hong Kong on Tuesday for the Reg S.
A subsidiary of the bank, Landmark Funding 2016, most recently priced a dual tranche offering, including a $350m 2.62% 2018 and a $100m 3.2% 2021. Minsheng Hong Kong International Leasing provided a guarantee for the issuance in July this year. The bank’s Hong Kong branch also has a senior bond outstanding, according to Dealogic, which netted $600m from a 2.25% 2018s in May last year.
China Minsheng was established in Beijing in 1996 as the country’s first bank initiated and funded mainly by non-state-owned enterprises. As of end of the third quarter this year, has a core tier one capital adequacy ratio of 9.07%, down from 9.17% from end of 2015.
The last AT1 from the country was from China’s Huishang Bank Corp, which sealed a lucky $888m transaction on November 3. The deal not only marked the Chinese lender’s inaugural dollar-denominated AT1 but also the first from a city commercial bank in the country.