ICBC to issue $12.9b of preferred shares

ICBC’s plans to issue Rmb80 billion ($12.9 billion) worth of preferred shares should prepare the bank for expansion. Earliest issuance seen is fourth quarter.

Industrial and Commercial Bank of China said it plans to issue preferred shares worth Rmb80 billion $12.9 billion, becoming the latest Chinese bank to tap capital markets to meet tougher capital rules.

Analysts expect the earliest ICBC would be able to issue the shares will be during the fourth quarter and they anticipated limited impact on the earnings of China’s largest state-owned bank by assets and market value.

ICBC had already flagged the share issue was coming, but after the market closed on Friday it gave other details in a regulatory filing with the Shanghai Stock Exchange, such as the method of distribution,...

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