China Merchants Bank to Issue USD1 Billion in Offshore Preference Shares
Liao Shumin
DATE:  Oct 20 2017
/ SOURCE:  Yicai
China Merchants Bank to Issue USD1 Billion in Offshore Preference Shares China Merchants Bank to Issue USD1 Billion in Offshore Preference Shares

(Yicai Global) Oct. 20 -- China Merchants Bank Co. [SHA:600036;HKG:3968] plans to issue USD1 billion in non-cumulative perpetual offshore preference shares with a dividend yield of 4.4 percent, the firm said in a statement.

The lender has signed a subscription agreement with its global coordinators and lead managers, who will subscribe to the shares or find suitable investors.

The bank signed a subscription agreement with COSCO Shipping Financial Holdings Co. on March 24 this year, under which the investor will subscribe to up to five million of the new shares for a total amount not exceeding CNY500 million (USD75.5 million). Once the latest issuance is complete, the investor will subscribe to 3.5 million offshore preference shares at USD20 a share, making up 7 percent of the total shares to be issued.

China Merchants Bank predicts that the net amount of money raised through the issuance will be around CNY6.58 billion (USD993 million). The money will be used to supplement the bank's other first-tier capital items.

Follow Yicai Global on
Keywords:   China Merchants Bank,Non-Cumulative Perpetual Offshore Preference Shares,Share Issuance,COSCO