Agricultural Bank’s non-public offering raises US$15.8 bln
After deducting relevant fees, all funds raised will be used to supplement core tier-one capital, say officials
Agricultural Bank of China, one of the four big state-owned banks, announced the non-public issuance of A shares worth 100 billion yuan (US$15.8 billion) while releasing its 2017 annual report, The Paper reported.
The bank said after deducting relevant fees, all the funds raised will be used to supplement core tier-one capital.
The participants include Central Huijin Investment, the Ministry of Finance, China Tobacco Corporation, Shanghai Haiyan Investment Management Co. Ltd., Zhongwei Capital, China Tobacco Corporation Hubei and New China Life Insurance.
In general, banks issue various types of capital instruments to meet regulatory requirements.
According to the China Banking Regulatory Commission, the systematic important banks’ core tier-one ratio, tier-one ratio and capital adequacy ratio must reach 8.5%, 9.5% and 11.5%, respectively.