Ping An Bank's 300 billion financing plan struck again

Beijing Business Daily (Reporter Yan Jin) private placement at the end of last year, reduced debts earlier this year, Ping An Bank's financing faster and faster pace. Yesterday, Ping An Bank's 300 billion financing plan struck again, including 200 billion of preferred shares and 10 billion of ordinary shares. Raised funds are all used to supplement bank capital, increase capital adequacy ratio. As a result, Ping An Bank has raised 56.43 billion yuan from various supplementary capital instruments in the past year or so.

One day after the suspension, Ping An Bank yesterday announced that the bank's board of directors held a meeting to consider the adoption of a non-public offering of not more than 200 billion preferred shares and non-public offering of not more than 10 billion ordinary shares of the financing program for supplementary banks Capital, optimize capital structure. Among them, the controlling shareholder of China Ping An Insurance (Group) Co., Ltd. intends to subscribe for 45% -50% of ordinary shares, Ping An of China Ping An Assets Management Co., Ltd. intends to subscribe for 50% -60% preferred shares.

According to the announcement, Ping An Bank intends to issue not more than 200 million preferred shares to raise funds not exceeding 200 billion yuan. The preferred shares to take the non-public offering, the object of issuance is not more than 200, including Ping An Capital, in line with the "preferred shares pilot management approach" requirements of qualified investors.

At the same time, Ping An Bank intends to raise funds through non-public offering of shares of not more than 10 billion yuan, including Ping An, including not more than 10 qualified investors, the issue price of not less than 20 trading days before the pricing benchmark company shares 95% of the average transaction price, that is 9.34 yuan / share, while Ping An Bank net assets per share of 10.13 yuan, that is, if the limit issue, the additional price will be lower than the net assets, but the final price and the object of bidding to determine .

It should be noted that the Ping An Bank financing adopted preferred shares plus common stock approach. Ping An Bank pointed out that preferred shares as innovative financing tools, compared with ordinary shares for lower financing costs, will not dilute the interests of ordinary shareholders; relative to bond financing, preferred shares can be supplemented by Tier 1 capital. At present, there are only core tier one and tier two capital in Ping An Bank's capital structure, which helps to optimize the capital structure.

In March this year, the preferred stock pilot officially opened in the listed banks, Bank of China, Agricultural Bank of China and Shanghai Pudong Development Bank have issued the corresponding preference shares issuance plan, combined with Ping An Bank 200 billion yuan, the proposed amount raised to 190 billion yuan.

It is worth mentioning that, Ping An Bank has been financing much faster than other banks. "Due to historical reasons, Ping An Bank's capital base has been relatively weak. Although the bank supplemented its capital through various ways such as retaining its own profits, issuing secondary T-bonds and asset-backed securities, the capital pressure still exists; at the same time, the bank is still in rapid Development period, the rapid expansion of outlets and other capital expenditures faster. "A banking analyst bluntly.

At present, the capital adequacy ratio of Ping An Bank is at a relatively low level in the industry. As of the end of the first quarter of 2014, Ping An Bank has a Tier 1 Tier 1 capital adequacy ratio and capital adequacy ratio of 8.7% and 10.79% respectively, which is close to the regulatory red line. .

However, the preferred shares are still in the pilot phase and there is some uncertainty in time. In response, the responsible person of Ping An Bank explained that non-public offering of common shares is a more mature capital supplement tool that can replenish the core tier one capital of banks In order to continue to meet the regulatory requirements.