Pudong Development Bank to raise RMB 6 bln from bond issue

Medium-sized Chinese lender Shanghai Pudong Development Bank Co<600000>, partly owned by Citigroup Inc plans to raise about RMB 6 billion (US$850 million) from hybrid bonds sales this year in a bid to replenish capital as increased demand for loans drained capital.

The bond offer is still subject to approval of China's banking regulator, the bank said on Friday in a document for a scheduled shareholders meeting.

The Shanghai-based lender announced last month its refinancing plans to sell up to 800 million new shares. Through the share and bond issuance, the capital adequacy ratio of the bank will be raised to at least 12% by the year end from 9.15% of the previous year.