Shareholders approves China Merchants Bank’s overseas bond issuance

AgBank will also issue $7.71bn subordinated bonds on June 2 following Shenzhen Development Bank’s $563.24mn mixed bonds launch last month.

China Merchants Bank intends to issue up to 30 billion yuan ($4.63 billion) worth of bonds in overseas markets over the next three years, reports 163.com, citing a company filing. The issuance plan has already been approved by the company’s shareholders. Total bond value issued over the next three years should not exceed 10 percent of the bank's outstanding liabilities.

CMB posted a 0.56-percent decrease in capital adequacy ratio (CAR) from the beginning of this year to 10.91 percent by the end of the first quarter, while core capital adequacy ratio (core CAR) fell 0.38 percentage points to 7.66 percent during the same period, according to a report in CapitalVue.

Separately, Agricultural Bank of China’s 50 billion yuan ($7.71 billion) worth of subordinated bonds will be issued on June 2, and Shenzhen Development Bank’s 3.65 billion yuan ($563.24 million) worth of mixed bonds were also launched last month.