Perpetual bond issuance of banks in September reached a new high, 6 companies completed issuance within 8 days

　　Our reporter Lu Dong

　　Bank perpetual bond issuance is advancing at an unprecedented speed.

In just 8 days in late September, 6 banks completed the issuance.

　　Since the beginning of this year, the number of perpetual bond issuances has continued to grow substantially. As of the end of the third quarter, the number of bank perpetual bond issuances has exceeded 30 in the year, which has tripled in the same period last year, and the total issuance scale has reached 461.3 billion yuan.

At the same time, small and medium banks are actively using perpetual bonds as a capital replenishment tool to "make up blood."

　　Zhen Xinwei, a researcher at the Institute of International Monetary Studies at Renmin University of China, said in an interview with a reporter from the Securities Daily that the increase in the issuance of bank perpetual bonds will relieve the pressure caused by excessive capital consumption to a certain extent and further strengthen the banking institutions. The foundation for steady development.

"Small and medium banks have weaker capital replenishment channels and capabilities than large banks, and tend to distribute more perpetual bond issuance to small and medium banks, which will help such banks better serve local small, medium and micro enterprises."

　　30 perpetual bonds issued in the first three quarters

　　Three times the same period last year

　　Entering 2020, banks will use perpetual bonds to supplement capital more frequently.

　　According to statistics from iFinD, in the first three quarters of this year, the scale of perpetual bond issuance by banks has exceeded 460 billion yuan, which has exceeded the 455 billion yuan in the same period last year.

In addition, the number of perpetual bonds issued has also increased significantly. At present, 27 banks have issued 30 perpetual bonds, while only 10 perpetual bonds were issued in the same period last year, and only 16 in the whole year.

　　In the past September, bank perpetual bond issuance has entered the fast lane. A total of 8 banks issued perpetual bonds that month. This month has also become the month with the highest number of perpetual bond issuance since the launch of bank perpetual bonds at the beginning of last year.

Previously, the issuance record was May this year, when a total of 5 banks issued perpetual bonds that month.

　　Especially in late September, banks’ issuance of perpetual bonds was unprecedented. From September 21 to September 28, there were Rizhao Bank, Dongying Bank, Bank of Communications, and Guangdong Huaxing Bank in just eight days. 6 banks including Weifang Bank and Jiangnan Rural Commercial Bank completed the issuance of perpetual bonds.

On Tuesday (October 13), Industrial Bank will issue 30 billion yuan of perpetual bonds, and the scale of bank perpetual bond issuance is expected to continue to increase rapidly.

　　Among the 27 banks that issued perpetual bonds in the first three quarters of this year, they have covered almost all types of banks including large state-owned banks, joint-stock banks, city commercial banks, rural commercial banks, and private banks.

At the same time, in addition to the different types of banks that issue perpetual bonds, the status of these bond-issuing banks in the capital market is also different. Among them, there are both listed banks and unlisted banks. For the first time in the army of banks issuing perpetual bonds of 3 billion yuan, listed on the NEEQ have appeared.

　　Since the first bank perpetual bond issuance at the beginning of 2019, the number of bank perpetual bond issuances has now reached 46, with a cumulative issuance scale of 1.03 trillion yuan, which has become the most popular "blood supplement" tool for banks.

　　It is worth noting that six banks, including Agricultural Bank of China, Bank of China, Bank of Communications, Ping An Bank, Luzhou Bank, and Rizhao Bank, have also used perpetual bonds to replenish blood. Among them, the Agricultural Bank of China issued perpetual bonds. The most "active", since last year, the bank has issued four perpetual bonds, with a total scale of 240 billion yuan, and other banks have also issued two perpetual bonds each.

　　Since the beginning of this year, the capital adequacy of banks has not been optimistic, and the pressure of capital replenishment has remained high.

　　As of the end of the second quarter of 2020, the core tier 1 capital adequacy ratio of commercial banks was 10.47%, a decrease of 0.41 percentage points from the end of the previous quarter; the tier 1 capital adequacy ratio was 11.61%, a decrease of 0.34 percentage points; the capital adequacy ratio was 14.21%, a decrease 0.31 percentage points.

The 36 A-share listed banks had an average capital adequacy ratio of 13.89% as of the end of the second quarter, a decrease of 0.42 percentage points from the end of last year.

　　Obviously, the large-scale issuance of perpetual bonds by commercial banks can promptly supplement the declining capital adequacy ratio.

For example, Industrial Bank disclosed in its perpetual bond prospectus that it predicts that after the successful completion of the 30 billion yuan perpetual bond issuance, the bank's capital adequacy ratio will increase from the current 12.73% to 13.27%.

　　Small and medium banks become protagonists

　　Complete the issuance within 20 years

　　The reporter noticed that since the beginning of this year, a total of 27 banks have issued perpetual bonds. Although there are many types, the number of small and medium-sized banks, including city commercial banks and rural commercial banks, continues to increase, and this phenomenon is becoming more and more obvious.

　　Wu Wen, a senior researcher at the Financial Research Center of the Bank of Communications, said in an interview with a reporter from the Securities Daily: “In many ways, promoting banks to replenish capital through perpetual bonds will help banks increase loans for small, medium and micro enterprises and further support entities. Economic development. Especially for small and medium-sized banks, since their positioning is more focused on small and medium-sized enterprises, supplementing capital will be more conducive to supporting the development of such enterprises."

　　According to the data, among the 27 banks that issued perpetual bonds in the first three quarters of this year, except for the 7 banks of Agricultural Bank, Bank of Communications, Bank of China, Postal Savings, China Everbright, Ping An, and China Merchants Bank, which are state-owned major banks and joint-stock banks, the remaining 20 are all The latter accounted for more than 70% of local small and medium banks.

　　Although the demand for capital replenishment is equally strong, compared with the diverse capital replenishment channels of large banks, small and medium-sized banks have relatively few capital replenishment methods.

Because of this, the capital adequacy ratios of some small and medium-sized banks have fallen below the regulatory red line, and there is greater pressure on capital replenishment. Perpetual bonds have become a key link for such banks to expand their capital replenishment channels.

　　Zhen Xinwei pointed out that the target customers of small and medium-sized banks’ credit loans are mainly local small and medium-sized enterprises. Increasing the capital replenishment of small and medium-sized banks will provide greater assistance to such banks in supporting the development of local SMEs and financing the real economy of blood transfusion.

(Securities Daily)