china-merchants-bank-proposes-26-billion-rights-issue

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 ratio of the company to support the continuing development and growth of its business, CMB said in a Hong Kong stock exchange filing. According to the bank's first-quarter earnings report, the core capital adequacy...

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