China Construction Bank (CCB), the country's largest property lender, said on Tuesday it has obtained the approval from the banking regulators to issue up to 40 billion yuan ($5.86 billion) in subordinated bonds to improve its capital adequacy ratio.

 
It said in a statement that the China Banking Regulatory Commission and the People's Bank of China have approved the proposed bond issue, endorsed by shareholders last June.

"The bonds should be appeal to investors given the current deposit interest rate level," said Tony Tong, a banking analyst at China Everbright Research Ltd.

CCB said last month that a bond issue would help raise its capital adequacy ratio and replenish supplementary capital of the bank.