China's Industrial Bank plans to issue the country's first "mixed capital" bond valued at 4 billion yuan ($505 million) this month.

The Fujian-based bank would issue the 15-year bond on the interbank market to boost its capital adequacy ratio, which now stood at 8.1 percent.

This month, China's central bank published new rules setting the boundaries for commercial banks to issue "mixed bonds" for the first time.

To do so, lenders must provide data on their capital-adequacy and debt levels over the previous three years.

Investors could purchase units valued at a minimum of 5 million yuan and the interest rates of the bond would be both fixed and unfixed, depending on market demand.

Industrial Bank is considering raising at least 10 billion yuan through an initial public offering in Shanghai late this year.

Hong Kong-based Hang Seng Bank, 62 percent-owned by HSBC , paid $208 million for nearly 16 percent of Industrial Bank in late 2003.

The Singaporean government investment vehicle, GIC Special Investments, owns 5 percent, and the World Bank's private sector arm, International Finance Corp., owns 4 percent.

Source:佚名