Date
17 August 2017
Bank of China is said to be mulling a multi-billion dollar preferred stock sale to boost its capital. Photo: Bloomberg
Bank of China is said to be mulling a multi-billion dollar preferred stock sale to boost its capital. Photo: Bloomberg

BoC gauges European interest for preferred stock

Bank of China (BoC) officials have met with European investors as part of early efforts to sell billions of dollars worth of preferred shares offshore, the Wall Street Journal reported Tuesday, citing people familiar with the matter.

The officials visited fund managers in London last week to gauge interest and gather opinions on US$6.5 billion of preferred stock the Chinese bank plans to sell offshore, the report said.

BoC will consider selling the securities in both dollars and euros, according to the report.

China’s banks are rushing to raise cash through equity and debt sales to help bolster their balance sheets to meet tough new regulatory requirements. Turning to Europe opens up a fresh pool of investors, the Journal noted.

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RC

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