The Bank of China plans to sell 10 to 15 billion yuan, or US$1.2 to1.8 billion in subordinated bonds next month as part of its reform efforts.

It will make it the first of China's four state-owned commercial banks to issue such debt.

The bank also has the option to issue up to 50 percent more subordinated debt, implying that a total of 90 billion yuan or US$11 billion could be sold eventually.

Earlier media reports said the China Construction Bank was considering issuing subordinated bonds in the second half of this year.

The two lenders have both been approved to go ahead with subordinated bond issues. 

(CRI.com June 30, 2004)