The medium-sized lender, in which Spain's second-biggest bank BBVA Group holds a 15 percent stake, said its board approved the debt issue plan on Wednesday, according to a statement filed with the Shanghai Stock Exchange.

No further details were provided in the statement.

China's banking regulator has urged banks to boost their capital adequacy ratio -- the amount of capital banks must hold against their risk -- amid concerns rampant lending will lead to a sharp rise in bad debts.

New bank loans reached 9.2 trillion yuan in the first eleven months of 2009 as banks heeded Beijing's calls to pump money into the world's third largest economy, and new lending is expected to remain high next year.

The capital adequacy ratio of Citic Bank was 11.24 percent at the end of September, higher than the minimum ratio of 10 percent set by the regulators but much lower than 14.32 percent recorded at the end of 2008.

The regulatory body has previously warned banks that it will impose curbs on banks' business expansion unless they strengthen their defences against bad loans as Beijing tries to put the brakes on the record lending.