Advertisement

New | China’s Bank of Communications to issue 15 billion yuan in preference shares

Bank of Communications to issue US$2.45 bln offshore perpetual preference shares to replenish capital

Reading Time:1 minute
Why you can trust SCMP
China's Bank of Communications announces issuing preference shares to raise 15 billion yuan. Photo: Reuters

Bank of Communications, China’s fifth-largest lender by assets, announced on Thursday to issue offshore preference shares to raise 15 billion yuan (US$2.45 billion) to boost its capital adequacy ratio.

Advertisement

The shares, to be issued to institutional investors next Wednesday, are perpetual and not redeemable at the option of holders, it announced in a filing with the Hong Kong Stock Exchange.

That is part of a bigger plan for the bank to issue no more than 600 million preference shares onshore and offshore to raise up to 60 billion yuan to replenish its additional tier-1 capital.

The offshore issuance will increase the bank’s tier-1 capital adequacy ratio by 0.34 percentage points to 11.64 per cent, according to its own estimate. It received Chinese regulatory approval last week.

loading
Advertisement