CCB issues $5.85b in bonds

China Construction Bank (CCB) said on Wednesday that it had issued RMB40 billion (US$5.85 billion) of subordinated bonds – a third more than originally expected – in Asia-Pacific’s biggest bond sale this year, the Financial Times reported. The bonds sold at the lower end of the indicated range. CCB said it would use the cash to reinforce its capital base. Last month, it announced that it planned to sell US$11.7 billion worth of subordinated bonds by the end of 2010. Chinese banks have been asked to raise capital adequacy ratios to 12% this year from a required minimum of 8%. Beijing wants domestic banks to improve their financial strength as the economy’s expansion slows to cope with a probable rise in bad debts. Fitch, the ratings agency, warned that because it can take a long time for problem loans to appear in published figures, the difficulties of China’s financial system might be underestimated.