China Everbright Bank Co plans to auction off 14.2 billion yuan (US$2 billion) of bad assets as it prepares for an initial public offering this year, the company said.

The bank will sell 9.7 billion yuan of sour loans and 4.5 billion yuan of other assets including receivables it hasn't been able to collect on, according to a statement on its Website. At the end of last year, 4.46 percent of its loans, or 18.6 billion yuan, were non-performing.