China Merchants Bank proposes $2.6 billion rights issue

The bank intends to raise money in order to improve its core capital adequacy.

China Merchants Bank has proposed a rights issue that could raise as much as Rmb18 billion $2.63 billion. If completed it could be one of the largest rights offerings of 2009.
The dual-issuance deal will contain up to 3.1 billion A-shares and 692 million H-shares. Both kinds of shares will be offered at a ratio of two rights shares for every 10 existing shares held.
The rationale for the issue is to improve the core capital adequacy...

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