Industrial Bank To Issue 10B Yuan Of Subordinate Bonds - ResearchInChina

Date:2011-08-10wangxin  Text Size:

Industrial Bank (601166.SH) will issue 10 billion yuan worth of subordinate bonds on June 28 and 29, reports, citing a company filing.

Ten-year bonds will account for two billion yuan of the total while the remaining eight billion yuan worth of bonds have terms of 15 years.

The issuer has the right to redeem the 10-year bonds at the end of the fifth year while it can redeem the 15-year bonds at the end of the 10th year.

Shanghai Brilliance Credit Rating and Investors Service rated both the unguaranteed bonds and the issuer AAA.

The major underwriters of the bonds include Goldman Sachs and Citic Securities (600030).

Proceeds raised will be used to boost supplementary capital, improve operational and risk management capabilities.

The capital adequacy ratio and core capital adequacy ratio of the bank as of end 2010 hit 11.22 percent and 8.8 percent, respectively.

Following the bond issuance, the capital adequacy ratio of Industrial Bank is expected to hit 12.22 percent.

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