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GDB gets shareholders' nod to raise 15b yuan

(chinadaily.com.cn)
Updated: 2010-04-09 15:44

Guangdong Development Bank (GDB), which is making preparations for its IPO, on Thursday got shareholders' approval to raise as much as 15 billion yuan ($2.2 billion) by selling additional shares to replenish its core capital, China Business News reported Friday.

The bank plans to sell up to 3.4 billion new shares at 4.38 yuan apiece, which would boost the total number of its shares to nearly 15 billion, the report said.

The stakes held by its four largest shareholders - Citi Group, China Life Insurance, State Power Grid, and CITIC Trust – will remain unchanged at 20 percent each after the share sale, the bank said.

GDB's net asset value per share was 1.72 yuan a share at the end of 2008. The figure for 2009 hasn't been released.

By Dec 31, 2008, the bank's core capital was 18.4 billion yuan, with the core capital adequacy ratio reaching 6.7 percent.

Meanwhile, the bank also said it would issue subordinate bonds around the end of this year to raise more money for its IPO plan.

The bank realized a net profit of 3.4 billion yuan in 2009, up 22 percent year-on-year. By the end of last year, it registered 666.5 billion yuan in total assets and 644.3 billion yuan in total liabilities.