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Minsheng in HK share sale to boost capital
By Hu Xiaocen |
March 26, 2012, Monday
|
Online Edition
Online Edition
CHINA Minsheng Banking Co, China's first non-state lender, said it plans to sell 16.5 billion shares in Hong Kong for capital replenishment.
The Beijing-based lender announced its A- and H- shares refinancing scheme in February, according to which it planned to raise about 29 billion yuan (US$ 4.57 billion) in total. The plan covers 20-billion-yuan convertible bonds in the A-share market, and 1.65 billion shares worth approximately 9 billion yuan in the H-share market.
The lender suspended trading of its shares today in both Hong Kong and Shanghai, as the filings to the bourses said it planned for H-share placement.
The bank's core capital adequacy ratio dropped from 2010's 8.07 percent to 7.87 last year. An insider of the lender said the successful equity sale would boost the bank's capital adequacy ratio to 12 percent from its current position at 10.86 percent.
The China Banking Regulatory Commission required the country's largest lenders to have a minimum capital adequacy ratio of 11.5 percent by the end of next year, while smaller banks like Minsheng Bank are required to have at least 10.5 percent under "normal conditions" by the end of 2016, said the commission last year.
The lender is among several other Chinese banks that have tapped capital markets to shore up capital to meet stricter regulatory requirements.
Minsheng Bank last Thursday posted a year-on-year jump of 58.8 percent in its net income to 27.9 billion yuan in 2011. Its A-shares have rallied 7.51 percent in 2012 so far. And the lender will resume share trading tomorrow.
The Beijing-based lender announced its A- and H- shares refinancing scheme in February, according to which it planned to raise about 29 billion yuan (US$ 4.57 billion) in total. The plan covers 20-billion-yuan convertible bonds in the A-share market, and 1.65 billion shares worth approximately 9 billion yuan in the H-share market.
The lender suspended trading of its shares today in both Hong Kong and Shanghai, as the filings to the bourses said it planned for H-share placement.
The bank's core capital adequacy ratio dropped from 2010's 8.07 percent to 7.87 last year. An insider of the lender said the successful equity sale would boost the bank's capital adequacy ratio to 12 percent from its current position at 10.86 percent.
The China Banking Regulatory Commission required the country's largest lenders to have a minimum capital adequacy ratio of 11.5 percent by the end of next year, while smaller banks like Minsheng Bank are required to have at least 10.5 percent under "normal conditions" by the end of 2016, said the commission last year.
The lender is among several other Chinese banks that have tapped capital markets to shore up capital to meet stricter regulatory requirements.
Minsheng Bank last Thursday posted a year-on-year jump of 58.8 percent in its net income to 27.9 billion yuan in 2011. Its A-shares have rallied 7.51 percent in 2012 so far. And the lender will resume share trading tomorrow.
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