China Megabanks Kick Off $8.3 Billion Loss-Absorbing Bond Sales

(Bloomberg) — Two of China’s biggest state banks will sell a combined 60 billion yuan ($8.3 billion) of total loss-absorbing capacity bonds (TLAC) starting this week, the first such debt sales by Chinese lenders in a drive to replenish capital and support growth of the world’s No. 2 economy.

Industrial & Commercial Bank of China Ltd. is planning to sell 30 billion yuan TLAC bonds in two tranches from Wednesday to Friday, the lender said in a Saturday statement to the Shanghai Clearing House. Bank of China Ltd. disclosed its issuance plan of the same amount, to be sold from Thursday to Monday, according to a statement last Monday.