China Construction Bank to issue first phase of subordinated bonds

The issuing ceremony of "First Phase of China Construction Bank Bonds 2004-2005" is held on Jul 20 in Beijing by China Construction Bank. It is the first time that the Construction Bank openly issued subordinated bonds and it is of great significance for successfully completing the reform of the joint-stock system and broadening the financing channel.

The Construction Bank will, under the approval of China Banking Regulatory Commission (CBRC) and People's Bank of China, issue a total amount of less than 40 billion yuan of subordinated bonds by phases. The capital raised will be wholly used for the supplementation of the bank's affiliated capital so as to improve the capital adequacy ratio. When the issuance of subordinated bonds is fulfilled, the Construction Bank's capital adequacy ratio is estimated to reach over 8 percent. This phase's bonds credit rating of the Construction Bank is at AAA level, and the issuance adopts the way of bookkeeping files and concentrated ration to openly issue to legal persona in the country's inter-bank bond market. This phase's bonds include 5 billion yuan of 10-year fixed-rate bonds and 5 billion yuan of 10-year floating-rate bonds. The major underwriter of the bonds is China International Capital Corp. Ltd. and there are also over 20 financial institutions taking part in this phase's bonds underwriting syndicate.

By People's Daily Online