Bank of China prepares for bond issue
By Pan Xiaoyi |
January 25, 2010, Monday
|
Print Edition
Print Edition
THE Bank of China plans to sell up to 40 billion yuan (US$5.8 billion) of convertible corporate bonds to replenish capital and improve its capital adequacy ratio.
The bond issue, which can be converted into its Shanghai-listed A shares, is subject to approval by shareholders at a meeting on March 19, the Beijing-based bank told Shanghai Stock Exchange on Saturday.
Banks in China extended a record 9.5 trillion yuan new loans in 2009 to shore up the economy, nearly doubling the 5 trillion yuan target.
Several listed banks, including the Industrial Bank and China Minsheng Banking Corp, have disclosed plans to sell additional shares or make rights issues to raise the capital ratio, raising concerns that market liquidity will be pressed further.
The Bank of China also said it is studying the feasibility of issuing additional Hong Kong-listed shares or A shares. But the plans depend on approval from the banking regulator and shareholders and no timetable is available, it said.
The bank's capital adequacy ratio dropped to 11.63 percent at the end of September from 13.43 percent at the beginning of last year.
The bond issue, which can be converted into its Shanghai-listed A shares, is subject to approval by shareholders at a meeting on March 19, the Beijing-based bank told Shanghai Stock Exchange on Saturday.
Banks in China extended a record 9.5 trillion yuan new loans in 2009 to shore up the economy, nearly doubling the 5 trillion yuan target.
Several listed banks, including the Industrial Bank and China Minsheng Banking Corp, have disclosed plans to sell additional shares or make rights issues to raise the capital ratio, raising concerns that market liquidity will be pressed further.
The Bank of China also said it is studying the feasibility of issuing additional Hong Kong-listed shares or A shares. But the plans depend on approval from the banking regulator and shareholders and no timetable is available, it said.
The bank's capital adequacy ratio dropped to 11.63 percent at the end of September from 13.43 percent at the beginning of last year.
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