Top Biz News

CCB plans $2.9b sub bond issue

(China Daily/Agencies)
Updated: 2009-12-11 07:56
Large Medium Small

China Construction Bank Corp (CCB), the country's second largest lender, plans to sell 20 billion yuan ($2.9 billion) of subordinated bonds by year-end to replenish capital, according to a person familiar with the matter.

The Beijing-based bank hasn't decided on the final date for a sale, said the person, declining to be identified because he's not authorized to speak to the media about it.

Related readings:
CCB plans $2.9b sub bond issue CCB launches six 10b yuan equity funds
CCB plans $2.9b sub bond issue China's economic growth to exceed 10% in Q4: CCB
CCB plans $2.9b sub bond issue CCB to purchase AIG's Hong Kong financial unit
CCB plans $2.9b sub bond issue CCB's yuan-denominated loans hit 708.5b yuan

"The bond sale will enable CCB to delay the need for equity financing until the end of next year," said Chen Shuixiang, a Shenzhen-based analyst at China Jianyin Investment Securities Co with a "strong buy" rating on the bank's shares.

Chinese lenders, under government pressure to finance part of the nation's 4-trillion-yuan stimulus plan, are raising capital to meet loan demand and take advantage of lower interest rates. The five largest lenders submitted plans recently to regulators for raising money, said sources.

CCB won approval from the China Banking Regulatory Commission earlier this year to sell 40 billion yuan of subordinated debt, and raised 20 billion yuan in July.

Specials
Column
China Daily E-paper