SPDB plans share issue

Shanghai Pudong Development Bank (SPDB) plans to raise US$763 million in a share issue in November to rebuild a depleted capital base, the <i>Financial Times</i> reported. The bank, which is the third largest lender listed on the mainland stock market, has been expanding rapidly and is now close to the 8% capital-adequacy ratio Chinese regulators demand. The bank has been seeking a secondary share offering for more than a year. "All proceeds raised through this additional share offer will be used to supplement core capital," the bank said. The share issue could give the bank more room to continue expanding, analysts told the newspaper. Citigroup has a 4.2% stake in SPDB and an option to raise that to 19.9%.