Caixin
FINANCE

Agricultural Bank to Raise $15.8 Billion in Private Placement

ABC said it chose to raise funds from the private placement of A shares instead of H shares because its H share prices have long lagged behind its A shares. Photo: VCG
ABC said it chose to raise funds from the private placement of A shares instead of H shares because its H share prices have long lagged behind its A shares. Photo: VCG

Agricultural Bank of China (ABC), the country’s third-largest bank, said on Monday it would raise as much as 100 billion yuan ($15.8 billion) in a private placement of its Shanghai-listed shares.

The bank will use the proceeds to replenish its core tier 1 capital and boost its capital adequacy, ABC said in a securities filing.

The adequacy ratio of ABC’s core tier 1 capital — meaning banks’ core capital and the main measure of a bank's financial strength — has been steadily improving over the last three years, but is still below the industry average level of 10.72%. After the private placement, the bank’s core tier 1 capital adequacy ratio will increase to 11.23% from 10.38%.

ladingImg
You've accessed an article available only to subscribers
Try 4 weeks for $0.99
SUBSCRIBE
Share this article
Open WeChat and scan the QR code
Copyright © 2018 Caixin Global Limited. All Rights Reserved.