China Constr Bank to issue up to 40 bln yuan bonds
SHANGHAI, April 14 (Reuters) - China Construction Bank (0939.HK), the country's second-largest lender by assets, said it will issue up to 40 billion yuan ($5.7 billion) in subordinated bonds with a maturity of no less than 10 years.
The bonds will be issued in the interbank market within 24 months of receiving shareholder approval, with the coupon set in line with market conditions, the bank said in a statement late on Friday.
The proceeds will be used to bolster its capital and boost its capital adequacy ratio.
The bank, which is 8.5 percent-owned by Bank of America (BAC.N), also said it would set up a committee including its chairman, president and several board members to make decisions on overseas acquisition investments.
Chairman Guo Shuqing had told a briefing on his bank's results announcement on Friday that the bank was actively seeking appropriate opportunities for overseas acquisitions, the official China Securities Journal reported on Monday.
Sources with direct knowledge of the situation said last month, however, that China Construction Bank had turned down nearly 30 proposals for possible acquisitions over the past year, including an opportunity to buy a stake in troubled U.S. home mortgage lender Countrywide Financial Corp CFC.N that it considered too risky. (For details, see [ID:nN26333325])
The bank reported a 51 percent jump in second-half earnings, in line with forecasts, boosted by higher fee income and margins despite losses on its U.S. subprime-related holdings. (For details, see [ID:nHKG201314]) ($1=7.006 Yuan) (Reporting by Edmund Klamann; editing by Ken Wills)
