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Money

Two China banks may tweak fund-raising plans

(Agencies)
Updated: 2010-05-05 12:14

Industrial and Commercial Bank of China are likely to revise their fund-raising plans by offering rights issues in Shanghai and Hong Kong rather than selling shares and convertible bonds, the 21st Century Business Herald reported on Wednesday.

The newspaper, which quoted unidentified several investment bankers, also cited a source at a state bank as saying the two lenders would announce their final plans at shareholder meetings on May 18 and 27, respectively.

Bank of China has said it plans to sell up to 20 percent of its existing shares and as much as 40 billion yuan worth of convertible bonds to replenish capital depleted by rapid lending.

Industrial and Commercial Bank of China, the world's biggest bank by market capitalization, said last month it would sell up to 25 billion yuan ($3.7 billion) in convertible bonds and seek additional capital through its Hong Kong-listed H-shares.

All Chinese banks are scrambling to raise capital while investor appetite lasts.

China Everbright Bank, a mid-sized lender that has been working for months on an initial public offering, could potentially list in Shanghai ahead of Agricultural Bank of China, which is preparing an IPO that could be worth $30 billion, according to a media report Wednesday.