UPDATE 3-China's Pudong Bank plans $4.4 bln fund raising

Fri Apr 10, 2009 9:01am BST
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* To raise as much as 30 bln yuan via share and bond sales

* Analyst doubts Citi will take part in share placement

* Pudong's profit growth may slow to 10 percent in 2009

* Shares rise 0.9 pct, underperform Shanghai gains (Adds Citi stake, other banks' fund-raising plans)

By Samuel Shen

SHANGHAI, April 10 (Reuters) - Shanghai Pudong Development Bank (600000.SS: Quote, Profile, Research), part-owned by Citigroup Inc (C.N: Quote, Profile, Research), said on Friday it planned to raise up to $4.4 billion in share and bond sales, joining other Chinese lenders in tapping ample liquidity and heeding Beijing's call to boost lending.

The government has been encouraging banks to lend freely to support its 4 trillion yuan ($585 billion) stimulus package to support a slowing economy, but has also been pushing lenders to improve their balance sheets. [ID:nPEK265709]

Mid-sized Pudong Bank plans to sell up to 15 billion yuan in domestic A shares to select institutional investors. It will also issue up to 15 billion yuan in subordinated debt, the bank said in a statement.

Larger rivals Bank of Communications (3328.HK: Quote, Profile, Research)(601328.SS: Quote, Profile, Research), China Construction Bank (0939.HK: Quote, Profile, Research)(601939.SS: Quote, Profile, Research) and China Minsheng Banking Corp (600016.SS: Quote, Profile, Research) have unveiled plans recently to issue up to a total of 125 billion yuan worth of bonds to boost their capital.   Continued...

 
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