China Merchants Bank has no issuance plans for 3 yrs-paper

SHANGHAI Oct 16 (Reuters) - China Merchants Bank (3968.HK) (600036.SS), which is raising up to 22 billion yuan ($3.22 billion) though a rights issue, won't unveil new fund-raising plans over the next three years, the China Securities Journal reported on Friday, citing President Ma Weihua.

The planned rights issue would satisfy Merchants Bank's financial needs over the next three years, as the lender aims to strengthen its pricing power and reduce its reliance on lending, the official newspaper cited Ma as saying.

Merchants Bank said on Oct 9 it planned to raise 18 billion yuan to 22 billion yuan, by offering up to 2.5 shares for each 10 existing shares held.

Chinese banks have been rushing to raise funds as the government prepares to tighten capital requirements to ward of risks following an unprecedented lending spree by banks in the first half of 2009.

Merchants bank Chairman Qin Xiao expected the planned rights issue to raise the lender's capital adequacy ratio to 12.6 percent from 10.63 percent, and increase its core capital adequacy ratio to 8.5 percent from 6.5 percent, the newspaper said.