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AgBank, Minsheng Plan Fund Raising

AgBank, Minsheng Plan Fund Raising

Write: Maitland [2011-05-20]
Agricultural Bank of China and China Minsheng Banking are planning to raise funds through selling shares.

It comes as China's banking sector prepares to meet stricter capital rules amid mounting concerns about bad loans.

Agriculture Bank says it is seeking approval from shareholders to sell $7.5 billion US dollars bonds in the coming two years.

Minsheng plans to raise about $3 billion US dollars in a share sale in Shanghai to replenish capital.

Under new global rules endorsed by leaders of the Group of 20 industrial and developing economies in November, banks' first-tier capital, which comprises common equity and retained profit, must amount to 8.5% of their risk-bearing assets by 2019, more than double the current level.

To boost their capital bases, 12 of China's 16 listed banks raised funds last year. The five largest banks raised $62 billion US dollars from stock markets in Shanghai and Hong Kong.