SPD Bank to issue convertible bonds at record scale

BEIJING - Shanghai Pudong Development Bank (SPD Bank) will issue 50 billion yuan (about $7.1 billion) of convertible bonds, the largest offering ever on China's mainland market once completed.

Offline subscriptions for the bonds will start Friday, while online subscriptions will begin Monday, according to the prospectus released by the bank.

Continuous asset growth has raised higher demands for replenishing its capital, the bank said in the prospectus.

SPD Bank's total assets amounted to 6.66 trillion yuan by the end of June, up 5.89 percent from the end of 2018, according to the bank's financial results for the first half of this year.

Convertible bond issuance has become a significant tool for listed banks in China to raise funds, as the country's tighter financial scrutiny to defuse risks brought higher standards for capital.

Convertible bonds are corporate bonds that can be exchanged for common stock in the issuing company.