China\'s Bank of Communications to place shares
Source: Brecorder.com Date: (2012-03-16)Category:
SHANGHAI: China\'s Bank of Communications, the nation\'s fifth largest lender, said Thursday it would raise 56.6 billion yuan ($9.0 billion) through a private share placement to boost capital.
The bank -- listed in both Shanghai and Hong Kong -- would issue stock to 12 institutional investors, including existing shareholder British banking giant HSBC, according to a statement from the Chinese bank.
HSBC holds around 19 percent of Bank of Communications and would maintain that stake after the new issue, it said. Other investors included China\'s Ministry of Finance and tobacco giant Yunnan Hongta Group.
The issue would boost capital given stricter requirements by regulators, Bank of Communications said.
It added increasing capital would \"strengthen the bank\'s ability of resisting risks and profitability and ensuring sustained, rapid and sound development of the business\".
The bank will issue both A shares denominated in China\'s domestic yuan currency and H shares, stock of Chinese enterprises listed in Hong Kong.
The bank\'s stock was suspended from trading in both Shanghai and Hong Kong on Thursday. It closed down 0.81 percent at 4.87 yuan in Shanghai on Wednesday and ended down 0.48 percent at HK$6.19 in Hong Kong.
Bank of Communications also raised funds to replenish capital nearly two years ago following a government-backed lending spree in 2009 aimed at boosting growth in the wake of the global economic crisis.
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