ICBC and Agricultural Bank plan RMB260bn placements, with China's finance ministry taking RMB200bn
Industrial and Commercial Bank of China and Agricultural Bank of China disclosed plans on Sunday to raise up to RMB100bn and RMB160bn through placements to named investors. China's Ministry of Finance would subscribe for RMB70bn at ICBC and RMB130bn at Agricultural Bank.
The rest comes from tobacco interests. Six tobacco entities would put RMB30bn into ICBC, while China Tobacco and five affiliates would put RMB30bn into Agricultural Bank. Both banks say net proceeds would replenish core Tier 1 capital.
Nothing is final. Each plan still needs shareholder approval, financial regulator approval, Shanghai Stock Exchange review and China Securities Regulatory Commission registration.
