Mar. 7, 2012 (China Knowledge) - China Merchants Bank<600036
>, the nation's fifth-largest bank by market value, intends to issue RMB 20 billion worth of unsecured bonds on the interbank market from Mar. 9 to Mar. 14, sources reported.
The to-be-issued bonds will comprise RMB 10 billion worth of fixed-rate five-year bonds and RMB 10 billion of floated-rate five-year bonds.
Coupon rate will be determined in the process of book-building. Both value date and payment due date will be Mar. 14.
Proceeds from the issue will be used to repay bank loans and replenish working capital, said the issuer.
China Lianhe Credit Rating Co Ltd has rated the issuer and bonds AAA and AAA, respectively.
China International Capital Corp (CICC), the largest investment bank in the country, has been assigned as the lead underwriter and bookrunner. CITIC Securities Co<600030
>, China's largest securities firm by market value, will be the joint lead underwriter.
This will be the issuer's first bond this year.
The issuer's non-performing loan ratio reduced from 1.11% at the end of 2008, to 0.82% of 2009, 0.68% of 2010 and 0.61% as of Jun. 30, 2011.