CCB's $5.84bn bond issue okayed

China Construction Bank (CCB) said Tuesday it received approval from the China Banking Regulatory Commission and the People’s Bank of China to issue up to US$5.84 billion in subordinated bonds, Reuters reported. Shareholders had endorsed the listing last June. CCB said that the proceeds of the bond issue, with a maturity of no less than 10 years, would be used to raise its capital adequacy ratio. The issue will be conducted within two years of shareholders’ approval, with the coupon set in accordance to market conditions at the time of issuance. CCB shares lost value recently as foreign investors, including partner Bank of America, began to sell CCB shares. CCB shares opened slightly higher in morning trading following the announcement.