BoCom seeks $9 billion through private placement

Bank of Communications BoCom, China’s fifth-largest lender by assets, plans to raise Rmb56.6 billion $9 billion in what could be one of the world’s biggest share sales this year. The deal will make Bocom the country’s best-capitalised bank, analysts say.

Although the transaction will be made through a private placement with a dozen institutional investors participating, the massive scale of the offering signals that China remains focused on promoting economic growth and is starting to let the banks increase their lending capacity. BoCom is the first Chinese bank to replenish its capital reserves after Beijing tightened capital rules for the country’s lenders last year.

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