Banking

China's CCB says Central Huijin to fully participate in rights issue

(Xinhua)
Updated: 2010-06-23 10:19
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BEIJING -- China Construction Bank (CCB), one of China's four major State-owned banks, said Tuesday Central Huijin Investment Ltd has promised to fully participate in its rights issue.

In a statement filed with the Shanghai Stock Exchange, CCB said it has received a commitment letter from Huijin.
Huijin will subscribe in cash for all rights shares offered in the issue, the statement said.

Huijin is a wholly State-owned company authorized by the State Council to exercise rights and obligations as an investor in major State-owned financial enterprises.

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CCB shareholders' approval of Huijin's commitment to the rights issue is pending, the statement said.

CCB said in an earlier statement to the Hong Kong Stock Exchange the rights issue will be allocated to shareholders at a 10-to-0.7 ratio at the same basis for both Shanghai-listed A shares and Hong Kong-listed H shares.

Up to 16.36 billion shares will be offered in the rights issue, comprising of 630 million A shares and 15.73 billion H shares, CCB said.

Gross proceeds from the rights issue will be no more than 75 billion yuan ($11.03 billion), it said, adding that all proceeds will be used to bolster the bank's capital base after deduction of issue expenses.

At the end of last year, CCB's core capital adequacy was around 9.3 percent.