China Minsheng Bank to sell $849m in subordinated bonds

China Minsheng Banking Corp (1988.HK, 600016.SH) will sell RMB5.8 billion (US$849 million) worth of 10-year subordinated bonds with help from Haitong Securities (600837.SH), Bloomberg reported, citing a statement on the Chinabond website. The statement said that the notes will be offered on a fixed- and floating rate basis in the interbank market on June 10. Encouraged by Beijing, China’s banks have been steadily improving their capital adequacy ratios by issuing bonds and preparing to raise funds on equity markets. China’s seven-day repurchase rate, a benchmark for the cost of loans between banks, slumped for two consecutive days by 73 basis points to 2.2% after Bank of China (601988.SH, 3988.HK) completed a convertible bond sale, indicating that banks are becoming less desperate for cash.