Investors sign up for BOC cash call

13:16, December 13, 2010      

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Bank of China said investors representing 99.1 percent of its Hong Kong-listed shares signed up for its $9 billion rights share issue, which will boost the company's capital in response to tighter rules.

The country's No. 4 lender had received valid acceptances in respect of about 7.5 billion new Hong Kong-listed H-shares offered to shareholders, it said in a statement posted on the Hong Kong exchange Friday.

Total gross proceeds from the Hong Kong-listed H-share rights issue clocked in at HK$20.8 billion ($2.7 billion), on top of the 41.8 billion yuan ($6.3 billion) raised from its Shanghai-listed A-share rights issue, the bank said.

Excess shares not taken up will be available to investors who want them, with preference given to those wanting to top up odd lots, the bank said.

Chinesebanks including Bank of China are in the process of raising tens of billions of dollars in an effort to meet tighter capital requirements demanded by regulators to preempt a rise in bad loans and to cool the country's sizzling economy.

Rivals such as China Construction Bank and ICBC have all embarked on similar cash calls in a bid to shore up their capital positions.

Source: Global Times
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