China Everbright Bank Plans 30 Billion Yuan Preferred Share SaleBloomberg News
China Everbright Bank Co. plans to sell as much as 30 billion yuan ($4.91 billion) of preferred shares to boost its capital reserves, the company said today.
The Beijing-based lender’s board approved a plan to issue up to 300 million shares in a private placement, with China Everbright Group, one of its shareholders, subscribing for as many as 10 million shares, the company said in a statement to the Shanghai stock exchange. The funds will be used to boost tier-one capital, raise tier-one capital ratios and optimize capital structure, China Everbright said.
Lenders globally are bolstering their capital base to build an additional cushion against losses and reduce the need for taxpayer-funded bailouts in the event of a financial crisis. China Everbright said its fundraising comes as domestic and overseas supervisory authorities strengthen their supervision of capital adequacy ratios.
Industrial & Commercial Bank of China Ltd., the nation’s largest lender by market value, said in a statement in July that it is seeking to raise as much as 80 billion yuan by selling preferred stock in China and overseas.
— With assistance by Liza Lin