Shenzhen Development Bank held a temporary general meeting on October 15, which approved a resolution to issue not more than CNY 28 billion bonds in coming thee years. 

Although being one of the 14 listed commercial lenders, Shenzhen Development Bank failed to meet the minimum requirement for capital adequacy ratio until the first half of 2008 after consecutive bond issues. But the capital adequacy ratio remained lower than the counterparts.

It terminated share sale agreement with Baosteel Group this September and soon its board of directors approved of issuing subordinated bond, financial bonds and mixed-type capital bonds in the coming three years. The Shenzhen-based lender plans to issue not more than CNY 10 billion equivalent subordinated bonds, CNY 10 billion financial bonds and CNY 8 billion mixed-type bonds.

As affiliated capital cannot outpace core capital, the massive bond issues signal Shenzhen Development Bank would launch seasoned equity offering in the futures, said analysts.