China Merchants Bank Co. Ltd. plans to raise up to 35 billion Chinese yuan via a nonpublic issuance of domestic and offshore preference shares.

The bank said March 24 that the bank will issue up to 7.5 billion yuan of offshore preference shares and 27.5 billion yuan of domestic preference shares.

COSCO Shipping Financial plans to subscribe for up to 500 million yuan of the offshore preference shares, the bank said. The proceeds from the issuance will be used to replenish the bank's Additional Tier 1 capital, meet regulatory requirements and optimize the capital structure of the company.

The issuance is subject to approval from the bank's shareholders.

As of March 24, US$1 was equivalent to 6.89 Chinese yuan.