Shenzhen Development Bank will issue both fixed-rate and floating-rate hybrid bonds, which count towards its Tier II, or supplementary, capital base, one of the sources said.

"It will happen at the earliest next week," the source added.

The lead underwriter for the sale is Haitong Securities, the sources said.

Ping An Insurance, China's No. 2 insurer, owns a 30 percent stake in Shenzhen Development Bank. Ping An last week sold $2.5 billion in additional Hong Kong shares in a private placement to replenish its own capital after buying more of Shenzhen Bank in 2010.

Shenzhen Bank merged with Ping An's banking unit last year.