CMB seeks to raise $5.68 billion in rights issue

China Merchants Bank, the country's sixth-biggest bank by assets, outlines plan for an A-share and H-share rights issue to boost its capital buffers after a period of unsustainable loan growth.
The rights issue follows an unsustainable expansion of the bank’s balance sheet during the second quarter, say analysts.
The rights issue follows an unsustainable expansion of the bank’s balance sheet during the second quarter, say analysts.
August 23, 2013

China Merchants Bank CMB said it aims to raise $5.68 billion via an A-share and H-share rights issue to fatten its capital buffers.

The issue would be the second-biggest share sale globally so far this year, behind Japan Tobacco's $7.78 billion offering in March, according to data provider Dealogic.
 
The A-share rights offer should total Rmb 28.56 billion, while the H-share offer is HK$7.95 billion.

China’s sixth-biggest bank by assets said in July it would raise as much as Rmb 35 billion $5.72 billion.

The rights issue follows an unsustainable expansion of the bank’s balance...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222