ICBC plans $3.2b bond sale

Industrial and Commercial Bank of China (601398.SH, 1398.HK) plans to sell off US$3.24 billion of bonds as early as next month, Bloomberg reported. In May, ICBC was given shareholder approval to sell as much as US$3.6 billion in notes to shore up capital, in addition to selling shares equivalent to as much as 20% of outstanding equity in Hong Kong and Shanghai. The decision came as Chinese banks announced plans to raise at least US$44.2 billion from sales of shares and bonds, in order to meet tougher financial guidelines introduced after US$1.4 trillion of new loans last year weakened capital. Citic Securities (600030.SH), China International Capital and Credit Suisse Founder Securities (CS.NYSE, CSGN.SIX) will manage ICBC’s sale, which may comprise 10- and 15-year subordinated notes.