BoCom to raise US$8.98 billion for capital replenishment

China's fifth largest lender by assets, has received government approval to complete a private share placement.

Bank of Communications, Ltd,  told the Shanghai Stock Exchange that the China Banking Regulatory Commission has approved its plan to issue RMB6.54 billion (US$1.0 billion) in yuan-denominated A-shares and HK$5.84 billion (US$753 million) in Hong Kong dollar-denominated H-shares.

It aims to raise RMB55.6 billion (US$8.98 billion) to replenish its core capital by offering new shares to existing shareholders through private placement.

China’s Ministry of Finance and 11 institutional investors and the National Social Security Fund will take part in the private placement.

After the placement, the Ministry of Finance will hold a 26.5% stake in BoCom while the National Social Security Fund's stake will stand at 13.9%.