Bank of Nanjing targets $1.6b sale of pref shares

The Chinese city commercial bank plans a domestic private placement of 100 million preferred shares to help replenish its capital base by raising up to Rmb10 billion.

Bank of Nanjing plans to raise up to Rmb10 billion $1.6 billion by selling 100 million preferred shares through a domestic private placement, the Chinese city commercial bank said on Wednesday.

With the intention of becoming the latest Chinese lender to tap capital markets to meet tougher capital rules, Bank of Nanjing said it will sell the shares to no more than 200 investors in the A-share market.

Local broker analysts estimate that the earliest possible timing of the placement is the fourth quarter, once shareholder and regulatory approval has been secured.

The Shanghai-listed lender has previously flagged the share issue but in...

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