BOC Faces Largest Ever Bond Issue Among Chinese Banks

Bank Of China's largest shareholder, CENTRAL HUIJIN INVESTMENT, had proposed to sell up to 120 billion yuan (US$17.55 billion) in subordinated bonds to raise capital. Central Huijin is a division of CHINA INVESTMENT CORP., the sovereign wealth fund. The bond

By None

Bank Of China’s largest shareholder, CENTRAL HUIJIN INVESTMENT, had proposed to sell up to 120 billion yuan (US$17.55 billion) in subordinated bonds to raise capital.

Central Huijin is a division of CHINA INVESTMENT CORP., the sovereign wealth fund.

The bond issue, which would be the largest yet among Chinese banks, would be sold through the end of 2012 and maturities would be at least five years, according to the statement.

The interest rate would be set in reference to the market rate, and the method of repaying principal was still on the docket.

L.D.

«