The Australia and New Zealand Banking Group (ASX: ANZ) keeps options open on a possible equity issue even if it pushes through with the $4.3 billion purchase of a controlling stake in Korean Exchange Bank (KEB).

Australia's third-largest bank was reported to have completed due diligence on KEB but inspection of the target bank's books continues until October; thereby, making a deal settlement to be in November.

ANZ may have enough regulatory capital to fund the acquisition from existing reserves and debt, advisers at Goldman Sachs and JPMorgan believe an entitlements-based equity raising would be favored well by shareholders.

The purchasing bank has a tier-one capital ratio of 10.5 percent and its shares have performed well against the other big four banks. US private equity firm Lone Star has been seeking to sell its 51 percent share in KEB.

KEB has a 45 percent market share of Korean trade finance. ANZ's initial offer was reported to be approximately 3 trillion won ($2.6 billion).

The ANZ is also considering reaching out to the Chinese market. A board meeting in Shanghai is schedule this week prior to the announcement of Chinese local incorporation. In November 2009, ANZ said it would inject a further $US 400 million into China. The expansion plan involves the establishment of more than 20 branches by 2012.

ANZ also holds 20 percent of Shanghai Rural Commercial Bank and Bank of Tianjin. Regional profits are expected to be 20 percent of group earnings by 2012.