Industrial and Commercial Bank of China Ltd. (ICBC), the nation’s largest commercial lender, said on Saturday that it plans to issue preferred stock worth up to 80 billion yuan (US$12.9 billion) to replenish its capital.
Up to 45 billion yuan of preferred stock will be issued in the domestic market while 35 billion yuan will be issued overseas, Xinhua news agency reported, citing a filing to the Shanghai Stock Exchange.
According to a plan approved by bank’s board, ICBC will issue the preferred shares to no more than 200 qualified investors through a private offering in the domestic market.
The issuance of preference shares overseas will be carried out independently from the domestic offering.
Voting rights for the planned preferred stocks will be restricted, ICBC said.
To help banks meet new global capital rules, China’s securities regulator announced in March this year new rules of the pilot program allowing eligible companies to issue preference shares.
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