BoCom to issue onshore, offshore AT1s of up to Rmb60bn
SINGAPORE, March 27 (IFR) – China’s Bank of Communications said it would raise up to Rmb60bn (US$9.7bn) in Additional Tier 1 capital through onshore and offshore offerings.
It will sell preference shares of up to Rmb45bn onshore to not more than 200 investors and up to Rmb15bn offshore. The bank has the right to cancel dividends, which are non-cumulative.
The pref shares will convert to equity if BoCom’s core equity T1 ratio falls to 5.125% or below, or if the China Banking Regulatory Commission determines that the bank is at the point of non-viability. There will be a call at the end of the fifth year. The conversion price for the offshore shares will be the trading average of the H-share price on the 20 days before the announcement, indicated at HK$6.51 per share.
