CCB plans debt issue to rebuild capital in line with Basel rules

China Construction Bank Corp said on Monday it plans to sell 20 billion yuan ($3.24 billion) in Basel III-compliant subordinated debt in China to replenish its tier-2 capital.

It didn't give a timeline at a press conference in Beijing. The plan is in line with a previous announcement to issue less than 60 billion yuan in Basel III-compliant subordinate debt before the end of 2015.

Unlike existing subordinated debt, Basel III-compliant subordinated debt can be converted into equity, or written off, if bank capital falls below a preset threshold. Investors can lose all their money if a regulator decides a bank is about to fail. Existing subordinated debt is only written off should a bank actually fail.