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PBOC nods banks' large-scale secondary capital bond issue

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2014-03-06 GMT+8:00

BEIJING, Mar. 6 (Xinhua) – The People'sBank of China (PBOC), China's central bank, approved banks to issue large-scalesecondary capital bonds. China Minsheng Bank (1988.HK; 600016.SH) got the headstart.

The bank announced Thursday that it hadbeen approved by the central bank to issue no more than 20 billion yuan worthof secondary capital bonds.

Insiders anticipated that the bank wouldtry to complete the issuance within the first quarter of 2014, as it wasanxious to replenish its capital via this way. 

The bank originally planned to reduce theconversion price of its convertible bonds, in a bid to promote them to turninto stocks as soon as possible and supplement its capital. However, the planwas unexpectedly vetoed by the generally meeting of stockholders.

By September 30, 2013, the core tier-onecapital ratio and capital adequacy ratio of China Minsheng Bank had stood at8.18 percent and 10.15 percent, lower than the bottom line prescribed byregulators and average level in the banking industry as well.

By far, many banks released plans to issuesecondary capital bonds. (Edited by Zhang Yuan, zhangyuan11@xinhua.org)

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