Coordination丨Ma Chunyuan
Author丨Li Yuan
Picture Source丨TuChong
In the context of increasing support for the real economy and loose liquidity in the money market, the issuance of financial bonds in commercial banks has heated up this year, especially secondary capital bonds , green financial bonds, small and micro financial bonds, etc.
wind data shows that as of November 2, commercial banks have issued perpetual bonds and secondary capital bonds totaling 971.465 billion yuan, and issued a total of 1202.573 billion yuan in 2021. Among them, secondary capital bonds have exceeded the annual quota for last year, and the issuance of perpetual bonds has decreased. Perpetual bonds and secondary capital bonds can be used to supplement the adequacy ratio of commercial banks, including tier 1 capital and capital adequacy ratio, ease capital constraints, and thus increase support for the real economy.
At the same time, as of November 2, commercial banks have issued green financial bonds, small and micro financial bonds, "agriculture, rural areas and other bonds totaling 909.587 billion yuan, and the issuance of only 771.055 billion yuan in the whole year of 2021. Among them, green financial bonds have increased significantly year-on-year, and these bonds will be used for loan issuance in specific fields, etc.
It is worth noting that in the context of relatively loose liquidity in the money market, the bond issuance interest rates of many commercial banks hit new lows, and under the enthusiasm of institutions, some banks have adopted the innovative issuance mechanism for the first time "basic issuance scale + excess additional issuance".
market demand has increased, and banks have innovated issuance mechanisms
Under the pressure of stabilizing growth, commercial banks have continuously increased their support for the real economy, especially large state-owned banks play the role of "leader". Central Bank data shows that RMB loans increased by 18.08 trillion yuan in the first three quarters, an increase of 1.36 trillion yuan year-on-year. The six major banks accounted for more than 50% of the new loans in the first three quarters. While increasing loan issuance,
will consume the capital of commercial banks. In addition to replenishing core tier 1 capital , issuing perpetual bonds and secondary capital bonds is also the choice of more banks, and can supplement the tier 1 capital adequacy ratio and capital adequacy ratio accordingly.
From the perspective of the secondary capital bonds with a large issuance scale, nearly 40 banks have completed issuances this year, and the issuance quotas of state-owned banks and shares banks account for a large proportion, including China Construction Bank, Agricultural Bank of China, Bank of China , etc., while small and medium-sized banks only account for a large proportion of issuances.
Take Agricultural Bank as an example. In September this year, the bank booked the issuance of 70 billion yuan of secondary capital bonds, of which 5+5-year 50 billion yuan, with an issuance interest rate of 3.03%, 10+5-year 20 billion yuan, with an issuance interest rate of 3.34%. The bond was the first to introduce a mixed issuance mechanism, that is, the issuance scale and structure are optimally adjusted with market changes and investor needs. The basic issuance scale is 50 billion yuan, and the additional issuance upper limit is 20 billion yuan. The scale of the additional issuance and the final issuance scale both set the highest record for bank capital bonds this year, attracting more than 200 institutions to participate in the investment.
"This issuance will further consolidate the capital foundation and ability of the Agricultural Bank of China to serve the real economy, promote the Agricultural Bank of China to improve the efficiency of long-term fund raising, optimize the debt structure, and better match credit issuance in key national areas with long cycles such as infrastructure construction." Agricultural Bank of China said.
, and perpetual bonds are issued relatively small this year, with only 14 banks completing the issuance, and the structure is similar to that of secondary capital bonds. Taking China Construction Bank as an example, in early September, the bank issued 40 billion yuan perpetual bonds with an issuance rate of 3.20%. This perpetual bond adopts the innovative issuance mechanism for the first time, setting up a basic issuance scale of 30 billion yuan and attaching an over-issuance right of 10 billion yuan. not only reduces the issuance risk, but also achieves a comprehensive balance of issuance scale and face interest rates. This innovative issuance mechanism is the first attempt of commercial banks' perpetual bond varieties.
"This year, the main ones that use capital replenishment tools are large banks and joint-stock banks. These banks have a high Tier 1 capital adequacy ratio overall, and only the secondary capital tools with lower issuance costs can achieve the purpose of capital replenishment. Perpetual bonds are only considered when the interest rate level is significantly lower than the issuance rate. The different characteristics of the two types of bonds determine that there are differences in their issuance rhythm."Xiang Qiyue, a senior researcher at the China Banking Institute, explained when explaining the issuance differences between secondary capital bonds and perpetual bonds.
The head of relevant departments of the China Banking and Insurance Regulatory Commission recently introduced that as of the end of the third quarter, the capital adequacy ratio of commercial banks was 15.09%, an increase of 0.29 percentage points year-on-year; at the end of the second quarter, it was 14.87%, which also increased month-on-month. The issuance of
theme bonds has increased significantly, supporting specific areas of
, unlike perpetual bonds and secondary capital bonds, green financial bonds, small and micro financial bonds, and "agriculture and rural" financial bonds cannot supplement bank capital, but loan issuance in the corresponding fields. Taking green financial bonds as an example, the Bank of Communications made it clear in the green financial bonds issued this year that the funds raised will be used for the "Green Bond Support Project Catalog (2021 Edition) 》. Statistics of
show that since this year, 32 banks have issued green finance bonds, with a total issuance scale of 213.257 billion yuan, which is far exceeding last year in terms of the number of bond issuing institutions and issuance scale. In 2021, a total of 17 banks issued green finance bonds, with a total issuance scale of 95.055 billion yuan. Zeng Gang, director of the Shanghai Financial and Development Laboratory of Shanghai, believes that the reason for the current "explosion" of green financial bonds is, on the one hand, that in recent years, my country has attached more and more importance to green and low-carbon development, and has put forward more and more requirements for financial institutions to support the green and low-carbon development of the real economy. Under this direction, banking institutions need to support the asset side to increase the issuance of green credit to support the development of the green industry, and banking institutions need to find more sources of funds for this purpose ;On the other hand, in order to promote the development of the real economy and reduce the comprehensive financing costs of the real economy since this year, the overall liquidity is relatively abundant. The interest rate of the entire financial market of has declined, the bond issuance cost is low and the bond issuance period is relatively long. Raising and concentrating long-term funds by issuing green financial bonds has an advantage in raising and concentrating long-term funds through issuance of green financial bonds.
also has a large number of banks issued special financial bonds for small and micro enterprise loans. The financial management department has repeatedly stated that it supports financial institutions to issue special financial bonds for small and micro enterprise enterprises.
statistics show that since this year, 32 banks have issued special financial bonds for small and micro enterprise loans this year. For example, Ping An Bank html successfully issued special financial bonds for small and micro enterprise loans 20 billion yuan a few days ago, which is a three-year fixed-rate bond with a face rate of 2.45%. The funds raised will be based on applicable laws and regulatory departments The approval project is specifically used to issue loans to small and micro enterprises, and to increase credit support for small and micro enterprises.
It is worth mentioning that in the special real estate market environment this year, many banks have issued financial bonds to support real estate merger and acquisition loans, such as Pudong Development Bank, Guangfa Bank , Shanghai Bank , etc.
Recently, the China Banking and Insurance Regulatory Commission issued the "Decision on Amending Some Administrative License Regulations", which optimized the scope and mechanism of approval for banks to issue bonds, canceled the administrative license for raising and issuing non-capital bonds, and clarified the issuance mechanism of capital bonds. United Credit believes that this will help improve the efficiency of commercial banks in optimizing the liability structure and replenishing capital through issuing bonds, and promote the sustainable development of the bond market and commercial banks.
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Editor of this issue Jiang Peipei Intern Lin Xiying
