Money

China Construction Bank to issue $12b bonds

(Xinhua)
Updated: 2011-06-13 15:22

BEIJING -- China Construction Bank, China's second largest lender, said Monday that it plans to issue up to 80 billion yuan ($12.33 billion) in subordinated bonds with a duration of no less than five years.

Related readings:  China Construction Bank opens first office in Russia  CCB opens 1st representative office in Taipei  China UnionPay, CCB launch dual-currency credit card in HK  CCB's HK unit to challenge HSBC in mutual fund sales

The issuance will need approval from shareholders and regulators, including the China Banking Regulatory Commission, said the bank's statement filed to the Shanghai Stock Exchange.

According to the statement, the funds raised will be used to replenish the bank's capital.

The bank said in a separate statement that it will set up a wholly-owned commercial bank with capital investment of $100 million in Brazil's Sao Paulo.

At the end of the first quarter of this year, the bank's capital adequacy ratio stood at 12.45 percent while its core capital adequacy ratio was 10.33 percent.