Bank of China to launch £5.7bn rights issue
BANK of China plans to raise up to 60bn yuan (£5.7bn) through a rights offer, it said.
The bank proposed that shareholders get up to 1.1 rights per 10 shares held, it revealed in a statement.
“All the proceeds to be raised from the rights issue … shall be applied towards strengthening the capital base of the bank and to improve the capital adequacy ratio of the bank.”
China Central Huijin Investment Ltd is the state-owned parent of BOC, but the statement did not mention whether Huijin would subscribe to the rights offer.
The bank, which raised about $5.9bn (£3.88bn) via convertible bonds in Shanghai last month, joined domestic rivals in a rush to replenish funds depleted by last year’s lending spree and to
meet tighter capital adequacy ratios demanded by regulators.
Agriculture Bank of China, China’s third-largest lender, is raising $20bn plus via a dual listing in Hong Kong and Shanghai.