Bank of China sends 40 billion convertible bonds

The 81st meeting of the Commission issued by the SFC in 2010, the meeting was approved by the Bank of China 40 billion of the issuance of convertible bonds application.　　On the same day, the Securities and Futures Commission issued an announcement that it would convene the 84th Committee working Conference on May 28 to review the bank's rights issue application, and to review the IPO application of Jiangsu Hui Fung Agrochemical Co., Ltd. BOC's 40 billion-dollar financing plan was approved, meaning the prologue to the state-owned bank refinancing began.　　It is reported that ICBC has announced a 25 billion-yuan convertible bond issuance program, and has been approved by the general meeting of shareholders, CCB announced a 75 billion-yuan financing plan, the bank will be in the a+h of the stock rights of the cities not exceeding 42 billion yuan. According to the Bank of China previously announced, the company intends to issue the total amount of convertible bonds no more than 40 billion yuan, the period of issuance of 6 years, par interest rate of not more than 3%.　　This issue of the convertible bonds to not less than 50% of the proportion of the shareholders in addition to the holding shareholders of the original a-share priority placement. Analysts expect that if the BOC convertible bond is issued smoothly, it can add 40 billion additional capital to the company, which is expected to increase the capital adequacy ratio from 10.2% to 10.8% in 2010. If the transfer of debt to all shares in 2010, it will increase the core capital adequacy rate of about 60 basis points, the core capital adequacy ratio is expected to rise from 8% to 8.6%. The bank's management said at the beginning of the year that it planned to maintain a capital adequacy rate of at least 11.5% per cent for 2010-2012 years. At the end of the first quarter, BOC's capital adequacy ratio was 11.09% and the core capital adequacy ratio was 9.11%.