The China Minsheng Banking Corp. had issued 5.8 billion yuan (US$700.8 million) of subordinate bonds through the inter-bank bond market, said a bank official.

At present, the proceeds raised from the subordinate bond issue have been put under custody at the China Government Securities Depository Trust & Clearing Co.

According to regulations, the funds raised will be used as subordinate capital of Minsheng Bank, reported Shenzhen Daily.

By Sept. 30, 2004, Minsheng Bank had total assets worth 421.8 billion yuan, deposits outstanding of 360.4 billion yuan, loans outstanding of 265 billion yuan, total operating assets of 248.7 billion yuan, and liquid liabilities of 335.7 billion yuan.

The 5.8 billion yuan-subordinate bonds only make up 2.33 percent of the Minsheng's current operating assets and 1.73 percent of its liquid liabilities.

Minsheng Bank witnessed a 47- percent growth in net profit in the first three quarters of this year, compared with the same period last year, the Shanghai-listed bank said.

Its net profit in the first three quarters was 1.6 billion yuan.

Turnover during the first three quarters also surged by 57 percent from the same period last year to 12.8 billion yuan.

The first and only private bank in China, Minsheng now has the New Hope Investment as its biggest shareholder with a 6.58-percent stake.

Source: Shenzhen Daily/Agencies