BOC to Issue Convertible Debt

The board of directors of the Bank of China has approved a refinancing plan to boost its capital after several previous alterations to the plan.

Under the plan passed last Friday, the Beijing-based lender will issue no more than 40 billion yuan bonds convertible into A-shares, tradable on mainland stock markets. 

The lender, which ranked first in terms of new loans in 2009, is under pressure to issue new debt after the lending binge reduced its capital adequacy ratio from 13.43 percent to 11.63 percent at the end of September, close to the minimum requirement of 11 percent.