HONG KONG, March 20 (Reuters) - Shareholders of Bank of China have approved a previously announced fundraising plan, making the bank the first among major Chinese lenders to shore up its capital base and maintain lending capacity.
Bank of China will issue up to 20 percent of its existing shares and as much as 40 billion yuan ($5.86 billion) worth of six-year convertible bonds in Shanghai, the bank said in a filing to the Hong Kong stock exchange late on Friday. (http://www.hkexnews.hk/listedco/listconews/sehk/20100319/LTN20100319449.pdf)
Xiao Gang, chairman of the country's fourth-largest lender, said earlier this month the bank may also issue up to 20 percent of its H-shares' capital in Hong Kong soon, an offering that could strengthen its balance sheet by some $7.7 billion.
The Beijing-based state-owned lender is expected to report 24 percent increase for its 2009 full-year earnings next Tuesday.
($1=6.826 Yuan)
(Reporting by Michael Wei, Farah Master and Don Durfee)
((michael.wei@thomsonreuters.com; +8610 6627 1003; Reuters Messaging: michael.wei.reuters.com@reuters.net)) Keywords: BANKOFCHINA/ (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.
Bank of China will issue up to 20 percent of its existing shares and as much as 40 billion yuan ($5.86 billion) worth of six-year convertible bonds in Shanghai, the bank said in a filing to the Hong Kong stock exchange late on Friday. (http://www.hkexnews.hk/listedco/listconews/sehk/20100319/LTN20100319449.pdf)
Xiao Gang, chairman of the country's fourth-largest lender, said earlier this month the bank may also issue up to 20 percent of its H-shares' capital in Hong Kong soon, an offering that could strengthen its balance sheet by some $7.7 billion.
The Beijing-based state-owned lender is expected to report 24 percent increase for its 2009 full-year earnings next Tuesday.
($1=6.826 Yuan)
(Reporting by Michael Wei, Farah Master and Don Durfee)
((michael.wei@thomsonreuters.com; +8610 6627 1003; Reuters Messaging: michael.wei.reuters.com@reuters.net)) Keywords: BANKOFCHINA/ (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.
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