Banking

ICBC to sell $3.2b subordinated bond as early as August

(Agencies)
Updated: 2010-07-02 13:55

Industrial and Commercial Bank of China Ltd, the world's biggest lender by market value, plans to sell 22 billion yuan ($3.24 billion) of bonds as soon as next month, according to a person with knowledge of the matter.

Citic Securities Co, China International Capital Corp and Credit Suisse Founder Securities Ltd will manage the sale, which may comprise 10- and 15-year subordinated notes, said the person, who asked not to be identified as they're not authorized to discuss the transaction.

An ICBC spokesman declined to comment on the company's finances or to be named when contacted at the bank's main office in Beijing today.

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Chinese banks have announced plans to raise at least 300 billion yuan from sales of shares and bonds to meet tougher financial guidelines introduced after an unprecedented 9.59 trillion yuan of new loans last year weakened their capital. ICBC won shareholder approval in May to sell as much as 25 billion yuan in notes to shore up capital, and to sell shares equivalent to as much as 20 percent of outstanding equity in Hong Kong and Shanghai.

The bank also plans to raise 25 billion yuan through a sale of convertible bonds as soon as September, a person with knowledge of that matter said last month.