Commercial bank subordinated debt issue ushered in a blowout

The size of the issue has been more than last year, the newspaper data show that the Agricultural Bank of 18th issued 50 billion yuan subordinated debt, this year's commercial banks issued subordinated debt has reached 95 billion yuan, far more than last year's level.　　Analysts pointed out that in order to replenish capital and increase operating capital, commercial banks have a greater demand for debt issuance, and the addition of large firms, the subprime debt issue has a blowout situation. Agricultural Bank of China issued a 50 billion-tier debt agricultural Bank of China announced that the bank's 2009 subordinated bond (Phase I) bookkeeping filing was completed on May 18. The final total issuance of this issue has reached 50 billion yuan. Among them, 10-year fixed-rate bonds 20 billion yuan, the first 5-year par annual interest rate is 3.3%, 15-year fixed-rate bonds 25 billion yuan, the first 10-year coupon annual interest rate is 4%, 10-year floating rate bonds 5 billion yuan, the first 5-year par annual interest rate is one-year fixed deposit benchmark interest rate plus 60BP difference.　　Three varieties are attached to the issuer's redemption, if the issuer does not exercise the right of redemption, the remaining period of the various varieties of the annual coupon rate on the basis of the initial interest rate of 300 points. Agricultural Bank has previously announced that the fund-raising is net to enrich the subsidiary capital, improve capital adequacy ratio, to enhance operational strength and improve the ability to resist risk.　　Its report shows that in 2008, the bank's core capital adequacy ratio was 8.04%, and the capital adequacy ratio was only 9.41%, compared with the average 13% of the listed banks ' capital adequacy ratio, there was a considerable distance. This year, the subprime debt has been issued 95 billion yuan. In fact, since the financial crisis deepened in the 2008, the financial institutions in the United States, due to insufficient capital preparation and frequent crisis brought about by the warning effect, domestic commercial banks have through various ways to replenish capital, with the joint-stock commercial banks led by the financial institutions　　According to the CIC Securities Research Institute, 2006, 2007, the size of the issuance of subprime debt is not more than 40 billion, 2008 soared to more than 70 billion yuan. Entering the 2009, with the extraordinary growth of credit scale in the first quarter, the supervision department has tightened the monitoring of the assets quality index of commercial banks, and forced commercial banks to pay more attention to capital adequacy ratio. As a result, subordinated debt issuance continues to be favored. According to wind data statistics, the total circulation of subordinated debt has reached 95 billion yuan this year, exceeding the size of the year's issuance.　　In 2008, the total size of commercial bank subordinated debt was 73.6 billion yuan. In addition, the entry of national commercial banks is the main reason for the blowout in the circulation of subprime debt in recent months.　　Some people in the industry said that the new capital adequacy calculation method or will be implemented in the year, the first pilot implementation of the 7 banks, China, agriculture, industry, construction and other major lines impressively in the column, so the enthusiasm for issuing debt is unprecedentedly high. Statistics show that in 2008, a total of 12 commercial banks issued 23 subordinated debt, but none of them are national commercial banks. This year, a total of five banks issued subordinated debt, of which the construction Bank issuedLine of 40 billion yuan, plus the Agricultural Bank of 50 billion yuan, the total amount amounted to 90 billion yuan, almost occupy the vast majority. According to wind statistics, as of May 19, 2009, 9 listed companies have announced the secondary debt issuance plan, fund-raising are mainly used to enrich the subsidiary capital, improve capital adequacy ratio. Only from the size of these plans, the end of 2012, the total amount of subprime debt will be at least more than 433 billion yuan. Among them, the total distribution of the three major lines of China, work and construction has reached 300 billion yuan.