By George Chen
BEIJING, March 11 (Reuters) - Bank of China wants to issue additional Hong Kong-listed H shares as soon as possible in a follow-on offering equal to 20 percent of its H share capital, the chairman of China's fourth-largest lender by assets said on Thursday.
The lender was seeking approval from shareholders and regulators on the mainland and in Hong Kong for the share issuance, Xiao Gang told a news briefing during China's annual session of parliament.
Analysts briefed by the bank in January had said Bank of China was considering a new share sale in Hong Kong to raise capital, supplementing plans for a convertible bond issue of up to 40 billion yuan ($5.86 billion) to shore up its capital base and maintain its lending capacity.
Many of China's big banks are tapping the debt and equity markets for funds after a lending spree last year to support Beijing's economic stimulus left their balance sheets stretched and fanned worries about bad loans. But Chinese authorities have recently reined in credit and new lending posted a sharp drop in February.
Xiao said Bank of China will expand its global network, aiming to keep its international revenue at more than 20 percent of the total in the next few years, but has no plans to buy British interdealer broker Tullett Prebon or other foreign firms now.
Tullett Prebon said on Wednesday it was in preliminary talks that might lead to an offer, after the Daily Mail newspaper reported market rumours that Australia's Macquarie Group and Bank of China were interested in Tullet.
Xiao said earlier this week that he saw new loans growth at around 10 percent this year and the bank had no other fundraising plans in the A-share market after its planned convertible bond issue.
($1=6.825 Yuan)
(Reporting by Xie Heng, George Chen and Edmund Klamann; Writing by Samuel Shen; Editing by Jacqueline Wong)
((michael.wei@thomsonreuters.com; +8610 6627 1003; Reuters Messaging: michael.wei.reuters.com@reuters.net)) Keywords: BANKOFCHINA/SHARES (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
BEIJING, March 11 (Reuters) - Bank of China wants to issue additional Hong Kong-listed H shares as soon as possible in a follow-on offering equal to 20 percent of its H share capital, the chairman of China's fourth-largest lender by assets said on Thursday.
The lender was seeking approval from shareholders and regulators on the mainland and in Hong Kong for the share issuance, Xiao Gang told a news briefing during China's annual session of parliament.
Analysts briefed by the bank in January had said Bank of China was considering a new share sale in Hong Kong to raise capital, supplementing plans for a convertible bond issue of up to 40 billion yuan ($5.86 billion) to shore up its capital base and maintain its lending capacity.
Many of China's big banks are tapping the debt and equity markets for funds after a lending spree last year to support Beijing's economic stimulus left their balance sheets stretched and fanned worries about bad loans. But Chinese authorities have recently reined in credit and new lending posted a sharp drop in February.
Xiao said Bank of China will expand its global network, aiming to keep its international revenue at more than 20 percent of the total in the next few years, but has no plans to buy British interdealer broker Tullett Prebon or other foreign firms now.
Tullett Prebon said on Wednesday it was in preliminary talks that might lead to an offer, after the Daily Mail newspaper reported market rumours that Australia's Macquarie Group and Bank of China were interested in Tullet.
Xiao said earlier this week that he saw new loans growth at around 10 percent this year and the bank had no other fundraising plans in the A-share market after its planned convertible bond issue.
($1=6.825 Yuan)
(Reporting by Xie Heng, George Chen and Edmund Klamann; Writing by Samuel Shen; Editing by Jacqueline Wong)
((michael.wei@thomsonreuters.com; +8610 6627 1003; Reuters Messaging: michael.wei.reuters.com@reuters.net)) Keywords: BANKOFCHINA/SHARES (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
