May. 10, 2012 (China Knowledge) - Bank of Communications<601328
>, the mainland's fifth-largest lender by market value, announced yesterday that it has obtained approval from its shareholders to raise RMB 56.6 billion through a private placement to boost its capital base.
The bank said in a statement the plan is still subject to approval from banking and securities regulators.
The lender said earlier that it would issue 6.54 billion A shares at RMB 4.55 apiece and 5.84 billion H shares at HK$5.63 per share.
The shares will be issued to 12 institutions, including China's Ministry of Finance (MOF)
, China's National Social Security Fund (NSSF), HSBC Holdings<0005
> and China FAW Group.
Upon completion of the deal, the bank's capital adequacy ratio is expected to rise to 13% and its core capital adequacy ratio to increase to 10%.