Experts Say Bank Perpetual and Tier 2 Bond Issuance to Accelerate in Q2

On April 22, INDUSTRIAL BANK planned to issue perpetual bonds with a scale of 20 billion yuan; on April 23, Bank Of Communications planned to issue tier 2 capital bonds with a scale of 30 billion yuan... Following the "breakthrough" by ICBC and others, commercial banks have successively launched the issuance of tier 2 capital bonds and perpetual bonds (referred to as "two-perpetual bonds") in April. Experts stated that affected by both the pace of regulatory approval and seasonal factors in issuance, the issuance of two-perpetual bonds experienced a temporary window in the first quarter. With the implementation of approvals, the release of banks' capital replenishment needs, and the favorable conditions of a low-interest-rate environment combined, the issuance of two-perpetual bonds has quickly recovered, and the second quarter is expected to see the annual peak supply, assisting various commercial banks in solidifying their capital strength. (China Securities Journal)