Bank of Communications (BoCom; 601328.SH, 3328.HK) plans to raise US$4.8 billion through the sale of 7.35 billion shares in Shanghai and Hong Kong, Bloomberg reported. The target figure for the rights issue is 20% less than originally announced. BoCom, the country’s fourth-largest listed lender, will sell 3.89 billion A-shares in Shanghai at RMB4.50 (US$0.66) and 3.46 billion H-shares in Hong Kong at HK$5.14. HSBC, which has a 19% stake in the bank, will take up its full rights in the sale at a cost of about US$921 million. BoCom will use the funds raised to replenish its core capital, which took a hit last year as new loans totaled US$74.8 billion, more than double the amount offered in 2008. Chinese banks hope to raise at least a combined US$43.9 billion through share and debt sales after lending ballooned to US$1.4 trillion last year.
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