Shenzhen Development Bank Ups Bond Issue, Gets 6B Yuan Of Deposits

Date:2011-11-21houhaizhen  Text Size:

November 21 -- Shenzhen Development Bank (000001.SZ) said it plans to increase the scale of its bond issuance from 20 billion yuan to 30 billion yuan, and added that it obtained six billion yuan worth of deposits from Ping An Insurance (Group) Company of China (601318.SH,2318.HK), reports Shanghai Securities News, citing a company filing.

The bank had announced plans in October to raise up to 20 billion yuan through a bond issuance. Proceeds raised were to be used for lending to small companies and to supplement its mid and long-term capital.

The interest rate of the funds deposited by Ping An is between 5.75 percent and 5.95 percent, and the deposits have a term of five years and one month.

The loan-to-deposit ratio of Shenzhen Development Bank was 73.19 percent at the end of the third quarter, close to the regulatory limit of 75 percent.

According to Li Yaming, an analyst at UBS, the integration with Ping An will provide the bank with low-cost deposits.

Through the end of September, Shenzhen Development Bank had total assets of 930.5 billion yuan, up 28 percent from the beginning of 2011.

During the same period, the deposit balance rose 12 percent to 628.6 billion yuan, while the loan balance hit 459.7 billion yuan, up 13 percent.

Shares of the bank were down 0.94 percent to trade at 15.80 yuan per share at 14:48 today.

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