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Bank of China and China Merchants Bank Plans first Bad Loan Securitization Since 2008

Bank of China and China Merchants Bank Plans first Bad Loan Securitization Since 2008

Bank of China Ltd and China Merchants Bank are planning to sell bonds backed by non-performing assets, reviving a type of financing that would give the nation’s lenders another way to remove a growing pile of bad loans from their books.

“Bank of China plans to sell 301 million yuan (USD$46 million of the debt)”

~ Bloomberg

Bank of China plans to sell 301 million yuan (USD$46 million of the debt), according to a statement on Thursday. The sale, which would be the first for this type of deal since 2008, is scheduled for May 26, it said. The proposed bonds from Bank of China include a 234.8 million yuan senior portion and 66.2 million yuan in subordinated notes, according to the statement.

Related Reports: Bloomberg, Reuters

 

About Bank of China

As China’s most internationalised and diversified bank, Bank of China provides a comprehensive range of financial services to customers across the Chinese mainland as well as 41 countries and regions. The Bank’s core business is commercial banking, including corporate banking, personal banking and financial markets services. BOC International Holdings Limited, a wholly owned subsidiary, is the Bank’s investment banking arm. Bank of China Group Insurance Company Limited and Bank of China Insurance Company Limited, both wholly owned subsidiaries, run the Bank’s insurance business. Bank of China Group Investment Limited, a wholly owned subsidiary, undertakes the Bank’s direct investment and investment management business. Bank of China Investment Management Co., Ltd., a controlled subsidiary, operates the Bank’s fund management business. BOC Aviation Pte. Ltd., a wholly owned subsidiary, is in charge of the Bank’s aircraft leasing business.

Visit: Bank of China

 

About China Merchants Bank

Established in 1987 in Shenzhen, the forefront of China’s reform and opening-up drive, China Merchants Bank (“CMB”) is China’s first joint-stock commercial bank and also the first bank to attend the national experiment for the promotion of China’s banking industry reform driven by endeavors from outside the government.

Since its inception 24 years ago, CMB has grown with China’s economic progress from a small bank with a capital of 100 million yuan, one branch and over thirty employees into a nationwide joint-stock commercial bank that has a total net capital of 140 billion yuan, a total asset of 2.6 trillion yuan, over 800 branches and over 50,000 employees, ranking it among the world’s top 100 banks.

Visit: China Merchants Bank


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