Sep. 26, 2011 (China Knowledge) - Shenzhen-listed
Bank of Ningbo Co Ltd<002142
> announced last week that it has obtained approval from its shareholders to issue up to RMB 3 billion worth of subordinated bonds on the inter-bank bond market.
The lender said in a statement that bonds will have a maturity of at least five years. Proceeds from the offering will be used to replenish its tier-2 capital and increase its capital adequacy ratio.
At the end of June, the bank's capital adequacy ratio had fallen 1.58 percentage points from the end of 2010 to 14.62%, and its core capital adequacy ratio had dropped 1.04 percentage points to 11.46%.
In the first half of this year, the bank booked a net profit of RMB 1.66 billion, 31.09% more than in the same period of last year.
As of the end of June, the lender had total assets of RMB 262.45 billion, a decrease of 0.31% from the beginning of this year.