China Minsheng Banking Corporation (RCode:60016, 1988.HK) plans to issue corporate bonds worth up to one percent of its total assets in Hong Kong, reports caijing.com.cn, citing a company filing.

The bonds will have a maximum term of 10 years.

Based on total assets as of end March, the bank could raise up to 20.43 billion yuan from the bond issuance.

According to the bank, the bond issuance in Hong Kong could help to expand its funding sources and lower the cost of funding.

The scale of yuan-denominated bond issuances in Hong Kong were 16 billion yuan in 2009 and 32.5 billion yuan in 2010.

The total amount of yuan-denominated deposits in Hong Kong may hit 500 billion yuan by the end of 2011.

Bank of China (BOC) (601988.SH, 3988.HK), Bank of Communications (601328.SH, 3328.HK) and China Construction Bank (601939, 0939.HK) had, as of end 2010, respectively raised nine billion yuan, three billion yuan and three billion yuan through the issuance of such bonds.

Source:capitalvue