Ping An Bank evening announced the financing program

One day after the suspension, Ping An Bank (000001, SZ) announced the financing plan on the evening of July 15.

According to the announcement, the Board of Ping An Bank examined and approved the non-public offering of not more than 20 billion yuan of preferred shares and non-public offering of not more than 10 billion yuan of common stock financing plan.

"Daily Economic News" reporter noted that for this way to choose common shares and preferred shares at the same time, Ping An Bank stakeholders believe that the bank's capital supplement program to take into account the economic and timeliness, both to meet the urgent Financing needs, but also take into account the cost of the problem. The financing cost of preferred shares is relatively low. However, it is in the pilot stage and has uncertain time. Non-public offering of common shares is a more mature capital supplement tool that can replenish the core tier-one capital of the bank in time to meet the regulatory requirements.

Preferred shares have a fixed dividend

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. To adopt non-public offering, the object of issuance is not more than 200 eligible investors including Ping An Asset Management, which meet the requirements of the Pilot Project for Preferential Stock Management.

Of these, Ping An Asset Management Co., Ltd. promised to subscribe for the subscription at the same issue price and coupon dividend as other issuers. The subscription ratio is 50% ~ 60% of the total number of this offering. Ping An Asset Management Co., Ltd. is involved in the subscription of insurance funds under its management. In addition to Ping An Asset Management, Ping An Bank will adopt a method of inquiry and negotiate with sponsors (lead underwriters) to determine other issuers.

According to the announcement, preferred stock plans to adopt a fixed dividend rate, determined by the way investors inquiry. The nominal dividend payout ratio is not higher than the annual weighted average ROE of the company in the two most recent fiscal years prior to issuance. For the way of using fixed dividend, Ping An Bank official said that the fixed dividend rate can effectively lock up the financing costs, and for the potential investors of preference shares, they tend to be more stable and long-term products.

Ping An Bank stakeholders believe that preferred shares as an innovative financing tool, compared with the lower cost of ordinary shares financing, will not dilute the interests of ordinary shareholders; relative to bond financing, preferred shares can be supplemented by Tier 1 capital. At present, the capital structure of Ping An Bank has only core tier one capital and tier two capital. Issuing preferred stock can supplement the vacancy of other tier one capital and help to optimize the capital structure.

Data show that as of the end of the first quarter of 2014, the bank's core tier one capital adequacy ratio and tier one capital adequacy ratio were 8.7%, capital adequacy ratio was 10.79%. According to Ping An Bank estimates, without considering the issuance costs and the use of proceeds to raise the effectiveness of the case, after the completion of the issuance of preferred shares, the above three indicators of capital adequacy ratio will be increased to 8.70%, 10.35% and 12.44%.

Raised funds are all used to replenish capital

In addition to the preferred share issuance program, Ping An Bank also announced a 10 billion yuan common stock financing plan. According to the announcement, the bank intends to issue no more than 1.071 billion shares of ordinary shares through non-public issuance, with the financing amount not exceeding RMB 10 billion. The issuer is not more than 10 qualified investors including Ping An of China.

Among them, China Ping An promised to subscribe for cash ratio of 45% to 50% of the number of non-public offering of shares. Ping An of China to buy shares set 36 months restricted period, other investors limit the sale period of 12 months.

According to the announcement, the issue price of not less than 95% of the average trading price of the Company's shares during the 20 trading days prior to the pricing benchmark date, that is, not less than 9.34 yuan per share, and the final price and issue target shall be determined by bidding. Ping An China agreed not to participate in the pricing process of this market inquiry, but to accept the market inquiry results and other investors to subscribe at the same price.

"Considering that the preferred stock is still in the pilot stage and there is some uncertainty in the financing cycle, the non-public offering of common stock is a more mature capital supplement that can promptly replenish the Tier 1 capital to meet the regulatory requirements." Ping An Bank said In addition, the non-public offering of ordinary shares not only to supplement the company level capital, but also to meet the company to supplement the core tier one capital requirements.

According to the announcement, the capital raised from the non-public offering of preferred shares and ordinary shares will be used to supplement the bank's capital and reduce the capital adequacy ratio after deducting the issuance costs.

In addition, the non-public issuance of ordinary shares of Ping An Bank and the non-public offering of preferred shares listed above belong to two separate issuance activities, which do not constitute conditions. Any failure to obtain approval will not affect the other implementation.