Zhongyuan Bank Co. Ltd. plans to raise up to 20 billion yuan by issuing offshore preference shares and Tier 2 capital bonds.

The lender said in a Jan. 20 release that it plans to raise no more than 10 billion yuan by releasing up to 100 million shares on a private placement basis, with proceeds to be used to replenish its additional Tier 1 capital.

It also plans to raise up to 10 billion yuan via qualified Tier 2 capital instruments. Proceeds from the issuance will be used to replenish the bank's Tier 2 capital and boost its capital adequacy ratio and capital strengths.

Both issuances are subject to shareholder and regulatory approvals.

As of Jan. 19, US$1 was equivalent to 6.40 Chinese yuan.