Construction Bank issues bonds

China Construction Bank, one of the so-called Big Four state-owned banks, plans to issue up to RMB10 billion (US$1.2 billion) in subordinated debt Friday. According to state media, the bank plans to issue RMB 8 billion in 10-year bonds, and has reserved an option to expand that to RMB10 billion, depending on investor demand. The sale is the second issuing of debt bonds by the bank following the sale of RMB15 billion in subordinated bonds in July, and is intended to replenish its capital base ahead of a planned IPO. Last December the bank received US$22.5 billion in bail-out money from the central government, a prelude to the bank being chosen as a pilot project to turn it into a joint stock bank.