Tags: China | Construction | Bank | Rights | Issue

China Construction Bank Plans $9.2 Billion Rights Issue

Tuesday, 02 Nov 2010 01:30 PM

China Construction Bank (CCB) said on Tuesday it would raise 61.62 billion yuan ($9.21 billion) in a deeply discounted rights issue to strengthen its capital base.

The rights issue, first proposed in April, comes at a 41 percent discount to the theoretical ex-right price (TERP). The size of the deal is also bigger than an expected 75 billion yuan.

Chinese banks are to raise a total of some $70 billion to help meet tighter regulatory capital requirements.

Under CCB's rights issue terms, every 10 existing CCB shares are entitled to subscribe 0.7 rights share at 3.77 yuan per A-share and HK$4.38 each for H-shares.

The subscription price of HK$4.38 per H-share compares to its TERP of HK$7.43 each.

CCB's H-share will be dealt in on an ex-rights basis from Nov. 10, dealings in the nil paid H rights will begin on Nov. 23 and close on Dec. 3.

CCB International, China International Capital, Morgan Stanley are the joint global coordinators, other underwriters include CITIC Securities, Merrill Lynch Far East, Credit Suisse and BOCI Asia.

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China Construction Bank (CCB) said on Tuesday it would raise 61.62 billion yuan ($9.21 billion) in a deeply discounted rights issue to strengthen its capital base. The rights issue, first proposed in April, comes at a 41 percent discount to the theoretical ex-right price...
China,Construction,Bank,Rights,Issue
174
2010-30-02
Tuesday, 02 Nov 2010 01:30 PM
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