SPD Bank Makes Record Breaking 50B Yuan Issue of Convertible Bonds
Shanghai Pudong Development Bank (SPD Bank) is making the biggest ever issue of convertible bonds in mainland China.
The 50 billion yuan (approx. USD$7.1 billion) issue of convertible bonds commenced last Friday via offline subscription, with online subscriptions commencing on Monday according to a prospectus from SPD Bank.
According to SPD Bank continuous asset growth had put greater pressure on the commercial lender to replenish its capital, with total assets hitting 6.66 trillion yuan as of the end of the second half, for a 5.89% increase compared to the end of 2018.
Chinese regulators have also put greater pressure on banks to improve their capital standing, compelling many listed banks to turn to convertible bond issuance.