China Construction Bank (CCB), one of China's big-four state-owned commercial banks, said on Wednesday it has issued 40 billion yuan (US$5.8 billion) of subordinated callable bonds.

The lender originally planned to issue 30 billion yuan, but it exercised the over-allotment option of increasing that by no more than 10 billion yuan.

The sale would improve it capital adequacy ratio, support its strategic development goals and sharpen its competitive edge, the CCB said on Tuesday when it started to sell the bonds.

The issue includes 12 billion yuan 10-year bonds with a five-year call option that pays a coupon of 3.2 percent in the first five years and 28 billion yuan 15-year bonds with a 10-year call option that pays a coupon of 4 percent in the initial 10 years.

If the issuer does not exercise the call options, the coupons will increase by 3 percentage points.

(Xinhua News Agency February 26, 2009)