Ping An Bank to issue RMB 3 bln in subordinated bonds

Published: 21 Jun 2009 19:29:04 PST

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Jun. 22, 2009 (China Knowledge) - Ping An Bank, a subsidiary of Ping An Insurance (Group) Co of China Ltd<601318><2318>, announced on Friday that it will start issuing RMB 3 billion worth of ten-year subordinated bonds on Jun. 26.

The bonds include RMB 2 billion in ten-year fixed-rate bonds and RMB 1 billion in ten-year floating-rate bonds.

The proceeds from the issuance will be used to enlarge the bank's capital base, replenish its working capital, raise its capital adequacy ratio and fund approved investment projects, said the company in a statement.

At the end of last year, Ping An Bank's capital adequacy ratio was 10.69%, while its core capital adequacy ratio was 10.53%.

The lender has assigned Ping An Securities Co and CITIC Securities Co Ltd<600030>, the largest listed brokerage in China, as the lead underwriters of the issuance.

The bank's parent, Ping An Insurance, announced on Jun. 12 that it would spend RMB 22.13 billion raising its stake in Shenzhen Development Bank Co Ltd (SDB)<000001> to 30% from 5%. The deal still requires regulatory approval.

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