ICBC to Raise 45 Bilion Yuan via Rights Issue

China's largest bank by assets will raise 45 billion yuan this year from the Shanghai and Hong Kong stock markets to replenish its coffers.

Current shareholders of Industrial and Commercial Bank of China will have the right to buy 0.6 share per ten shares they hold, according to a July 28 statement by the Beijing-based lender.

The plan is subject to shareholder approval and relevant regulatory bodies. 

As of the end of 2009, core capital adequacy ratio at the lender dropped to 9.9 percent from 10.75 percent at the end of 2008 after a lending binge last year. Its capital adequacy ratio slid to 12.36 percent at the end of 2009 from 13.36 percent at the end of 2008.

China Construction Bank and the Bank of China have announced their plans to raise up to 75 billion yuan and 60 billion yuan, respectively, in Hong Kong and Shanghai stock markets.

Central Huijin Investment Ltd., a major shareholder in the three banks, has pledged to buy additional shares with cash.

Bank of Communications raised 32.7 billion yuan by issuing additional A-shares and H-shares on July 15.

The A-share of ICBC rose 1.87 percent on July 28 from the previous trading day to close at 4.36 yuan.