ICBC plans stock, convertible sales to shore up capital
By Luo Jun and Kelvin Wong | China Daily | Updated: 2010-03-26 08:00
HONG KONG - Industrial & Commercial Bank of China Ltd (ICBC) plans to sell stock and as much as 25 billion yuan ($3.7 billion) of convertible bonds to shore up capital eroded by unprecedented lending.
The bank will sell six-year bonds convertible into yuan-denominated A shares and will seek shareholder approval to issue stock equivalent to as much as 20 percent of its outstanding equity capital, according to a statement filed to the Hong Kong bourse on Thursday.
Chinese banks are raising money after a record 9.59 trillion yuan of new loans last year weakened their balance sheets and the regulator raised requirements for financial buffers.
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