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The Industrial and Commercial Bank of China plans to issue around 22 billion yuan worth of subordinated bonds, to maintain its tier 2 capital.
The bonds will effectively replace an issue of the same size sold in 2005, which matures next month. The proposed sub debt issue is separate from ICBC's plans to raise 25 billion yuan in convertible bonds by September. But the bank declined to comment on the news.
Major Chinese Banks, including Bank of China and China Construction Bank have announced capital-raising plans, to strengthen their balance sheets after massive lending in 2009.