Bank of China wants to raise up to 7 billion euros
Friday, July 2nd, 2010Bank of China, one of China's four largest banks, announced its intention to undertake a capital increase, the amount could reach 60 billion yuan (7.0 billion euros).
The bank offers to shareholders to obtain up to 1.1 Right to subscribe for 10 shares held.
"All the products of this rights issue (…) should enhance the bank's balance sheet and improve the ratio of financial solvency of the bank," she says in a statement.
This announcement does not specify whether the parent Public Bank, Central Huijin, subscribe to this offer.
In Hong Kong, under the BoC was trading at 3.97 Hong Kong dollars Wednesday, and he treated at 3.4 yuan in Shanghai on Friday before the suspension of trading.
MASSIVE CAPITAL RAISING
The bank, which raised 4.7 billion euros last month by issuing convertible bonds in Shanghai, is looking like its main rival China to strengthen its balance sheet and to comply with the stringent requirements of regulators in terms of ratios solvency.
Agricultural Bank of China (AGBANK), China's third largest bank, has launched its next capital increase of almost 16 billion euros via an IPO in Shanghai and Hong Kong.
According to local press, Chinese authorities have given their approval to raise capital totaling 287 billion yuan (33.6 billion euros) for the four largest banks.
In recent months, Industrial and Commercial Bank of China and China Construction Bank have also announced increases in capital.
Bank of Communications, the fifth-largest bank, raised its next 2.0 billion euros in Shanghai.