CHINA Bohai Bank Co., a mid-sized lender partly owned by Standard Chartered Plc, has picked lead banks for a planned Hong Kong initial public offering (IPO) that could raise more than US$2 billion, according to people familiar with the matter.

The Tianjin-based lender is working with ABC International Holdings Ltd., CCB International (Holdings) Ltd., CLSA Ltd. and Haitong International Securities Group on the share sale, said the people. The bank will probably list in the second half of next year, two of the people said.

Bohai Bank joins a flurry of mainland lenders seeking to raise capital at a record pace as they grapple with rising bad loans amid the slowest economic expansion since the early 1990s.

Policymakers have called on banks to help revive the nation’s growth and boost loans to China’s non-State sector, which would see them take on more risks.

Bohai Bank, with 1 trillion yuan (US$142 billion) in assets, saw its nonperforming loan ratio rise to 1.84 percent by the end of 2018 from 1.74 percent a year ago, with revenue declining 8.1 percent, according to its annual report.

Standard Chartered held about 20 percent in the firm as its second-largest shareholder, while local government-backed TEDA Investment Holding owned 25 percent. (SD-Agencies)