Monday, March 12, 2012

Bank of China plans $17.5 bln subordinated bonds

Bank of China, one of the country's biggest lenders, said Friday its main shareholder has proposed selling up to 120 billion yuan ($17.5 billion) of subordinated bonds to boost the bank's capital.

The bonds will have a term of no less than five years, the bank said in a notice to the Hong Kong Stock Exchange.

Central Safe Investments Ltd., a government investment vehicle, has a 67.53 percent stake in Bank of China, one of China's four big state-owned commercial banks.

Shareholders will consider the plan for the bond issue at a meeting on March 23, the bank said.

Given the feeble state of share markets, a growing number of financial institutions have turned to debt issues to raise capital.

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