Date
25 September 2017
Bank of China will use the funds to improve its Tier 1 capital adequacy ratio and further strengthen its capital structure. Photo: Bloomberg
Bank of China will use the funds to improve its Tier 1 capital adequacy ratio and further strengthen its capital structure. Photo: Bloomberg

Bank of China to issue 60 bln yuan preference shares

Bank of China (BOC) will issue preference shares worth no more than 60 billion yuan (US$9.73 billion) in the domestic market to replenish its Tier 1 capital, Xinhua News Agency reported Tuesday, citing a statement from the bank.

The bank is the third banking institution to launch the offering, following Agricultural Bank of China and SPD Bank, after the China Securities Regulatory Commission allowed commercial banks to issue preference shares to raise funds on April 18.

The non-public issuance will not exceed 600 million shares with face value of 100 yuan, according to the bank’s announcement filed with the Shanghai Stock Exchange.

The bank will use the proceeds of the issuance to improve its Tier 1 capital adequacy ratio and further strengthen its capital structure, the statement said.

In addition to the issuance, preference shares of no more than 40 billion yuan will be issued separately in the offshore market, it said. 

The plan is still awaiting shareholders’ approval and is subject to regulatory reviews, the report said.

The bank saw its net profit rise 12.35 percent to 163.47 billion yuan last year, with its capital adequacy ratio at 12.46 percent, it added.

– Contact us at [email protected]

CG 

 

EJI Weekly Newsletter

Please click here to unsubscribe