SEHK:1398Banks
Should Capital Raising Require Action From ICBC Shares Investors?
Industrial and Commercial Bank of China recently completed a RMB 20b undated Additional Tier 1 bond issue at a 1.86% initial distribution rate, while its board approved a private placement plan of up to RMB 100b in A shares to specified investors, subject to further regulatory and shareholder approvals.
The planned equity injection, with large intended subscriptions from the Ministry of Finance and major tobacco groups, points to strong state linked backing for ICBC’s capital plan and...