Bank of Communications Private Placement Approved by China
08/11/2012| 12:10am US/Eastern
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By Esther Fung
SHANGHAI--Bank of Communications Co. (BCMXY, 3328.HK) has received approval from China's securities regulator to complete its private share placement, the bank said in a stock exchange announcement Saturday.
The country's fifth largest lender by assets said in March it would try to raise 56.6 billion yuan ($8.9 billion) in a private placement to boost its capital in order to comply with stricter regulations in China. The bank said it would issue 6.54 billion yuan-denominated A shares at CNY4.55 each and 5.84 billion Hong Kong dollar-denominated H shares at HK$5.63 ($0.73) each.
According to the lender's March statement, 12 institutional investors, including China's Ministry of Finance and National Social Security Fund, HSBC, auto maker FAW Group and tobacco manufacturer Hongta Group, will take part in the placement.
The bank is 19%-owned by HSBC Holdings PLC (HBC, 0005.HK).
Write to Esther Fung at esther.fung@dowjones.com
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