BOC 40 billion convertible bond launch

Bank of China (601988) 31st published a 40 billion-yuan convertible bond issue announcement, pull big bank refinancing top. BOC this time to the shareholders in addition to the holding shareholder Huijin Company's original A shares of 3.75 yuan per share of convertible bonds received preferential placement.　　Convertible bonds from the end of the issuance of the full six months after the conversion to equity, the initial conversion price of 4.02 yuan/share. The diversified shareholder structure announcement shows that the duration of the convertible bonds is 6 years, the convertible bond coupon rate is 0.5%, the second year is 0.8%, the third year is 1.1%, the fourth year is 1.4%, the year Five is 1.7%, and the Year Six is 2%.　　An annual coupon payment method is used. BOC's transfer of debt was completed in June 2010 and gradually transferred to equity from the end of 2010.　　According to the Bank of China's 2009 profit distribution plan, will be in accordance with 0.14 yuan per share (pre-tax) distribution of cash dividends, the convertible bond price will be adjusted to 3.88 yuan/share after June 3, 2010. Market analysts pointed out that BOC convertible bonds under the value of the bond as a guarantee, with the positive stock price of the rising income does not cap, set to the original shareholders preferential placement provisions can effectively protect the interests of the original shareholders.　　If all convertible bonds are realized into shares, the share of public shareholding will be expected to rise to 8.71%, which can further diversify the shareholder structure. Limited financial indicators with the gradual transfer of convertible bonds, BOC's total equity will gradually increase, will be diluted earnings per share and net assets yield.　　In accordance with the 4.02 yuan/share of the conversion price calculation, the bank of the transfer of debt after all to share, earnings per share of about 3.77% diluted. According to wind statistics, the researchers of nearly 20 institutions have made a profit forecast for the bank of China, and it is expected that Bank of China's earnings from 2010 to 2012 are 0.3888, 0.4574 and 0.5289 yuan (regardless of the issuance of the convertible bonds), which can maintain a growth rate of more than 15% per annum.　　Analysts say the bank's own earnings growth has completely offset the dilution of the issuance of the convertible bond.　　In view of the issuance of convertible bonds, the bank's capital growth will be able to support business more rapid growth, and bring further profits growth, the actual situation will be more optimistic than the forecast. Since the listing, the proportion of Chinese bank cash dividend has remained at a high level of 35%-51%.