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.

CMB seeks to raise $5.68 billion in rights issue
The rights issue follows an unsustainable expansion of the bank’s balance sheet during the second quarter, say analysts.

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.

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