BoCom embarks on $3.7 bln fund-raising plan -paper

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Wed Feb 17, 2010 2:00am GMT

HONG KONG Feb 17 (Reuters) - Bank of Communications (BoCom) is asking investment banks to submit plans for a fund raising exercise estimated at 25 billion yuan ($3.66 billion) to bolster its stretched balance sheet, a newspaper reported on Wednesday.

BoCom (3328.HK) (601328.SS), China's No. 5 lender, had sent invitation letters to investment banks and a beauty pageant will be held as early as next week, Apple Daily reported.

The A and H-share fund raising plan could raise 25 billion yuan and the bank will not rule out the chance of issuing new shares, the newspaper quoted the invitation letter as saying.

However, the form and final amount of fund raising has not been finalised and it could eventually be increased to 40 billion yuan, it said.

Shanghai-based BoCom, which is about 20 percent owned by HSBC Holdings, is among a group of Chinese banks that have said they have financing plans for the next few years, although it has not yet announced a timetable for any fundraising. [nTOE5BK03K]

($1=6.832 yuan)

(Reporting by Alison Leung; Editing by Jonathan Hopfner)

((alison.leung@thomsonreuters.com; +852 2843 6369; Reuters Messaging: alison.leung.reuters.com@reuters.net))

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