CCB targets raising $12.5bn in CNY bond sale

Borrowing costs for CNY denominated debt were “substantially lower” in Hong Kong than in China.

China Construction Bank plans to raise 80 billion yuan (US$12.5 billion) through a yuan-denominated bond sale in Hong Kong, which analysts said Tuesday offered cheaper borrowing costs and strong demand.

Yuan-related financial products have been booming in Hong Kong, which has been acting as a test bed for Beijing's ambitious goal to turn the unit into a global currency.

China Construction Bank chairman Guo Shuqing said the lender hoped to raise most of the debt in the former British colony by the end of this year, Dow Jones Newswires reported Monday.

The bank — one of several Chinese lenders seeking to replenish their capital base — received shareholder approval for the subordinated bond issue last Thursday.

View the full story in China Post.