China Merchants Bank builds buffer vs bad debt with AT1

The Shenzhen-based lender manages to sell an aggressively-priced $1 billion deal to investors, even as a surge in lending worries regulators.

Ray Chan

October 20, 2017

China Merchants Bank, a Shenzhen-based lender, raised $1 billion from the sale of a perpetual non-call five-year additional tier-1 bond on Thursday, building a capital buffer against the growth of bad debt in what seems a politically smart move.

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