China Construction Bank mulls $12bn bond issue

The lender gets nod from shareholders to invest $100mn to set up a commercial bank unit in Sao Paulo.

China Construction Bank (CCB), the country's largest mortgage lender, plans to raise up to 80 billion yuan ($12.4 billion) by selling subordinated debt to boost its capital, the bank said on Friday.

The debt will have a maturity of at least five years, CCB said in a filing with the Shanghai Stock Exchange.

The debt programme is subject to regulatory and shareholder approval, it said, as stated in a report in Reuters.

The bank also said that its board of director has approved a plan to invest $100 million to set up a wholly owned commercial bank unit in Sao Paulo, Brazil.