Bank of China (BoC; 601988.SH, 3988.HK) will issue US$5.9 billion in convertible bonds after receiving regulatory approval late last week, Reuters reported. Subscriptions to the bonds, convertible into A-shares six months after the issue at RMB4.02 (US$0.58) per share, will begin on Wednesday. Following BoC’s approval last week, Bank of Communications (BoCom; 601328.SH, 3328.HK) became the latest mainland lender to receive regulatory approval for a bond issue. BoCom aims to raise up to US$6.1 billion in a rights issue in Shanghai and Hong Kong to boost its core capital adequacy ratio by two to three percentage points. Industrial and Commercial Bank of China (601398.SH, 1398.HK) and China Construction Bank (601939.SH, 0939.HK) have also announced fundraising plans recently.
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