Bank of Communications plans $15.39bn share issuance

Bank of Communications (HKEX:3328) has announced plans to issue A shares under a specific mandate, aiming to raise up to RMB120 billion (approximately USD15.39 billion) to strengthen its core tier 1 capital. This initiative, detailed in a series of related announcements, involves an application for a whitewash waiver and upcoming extraordinary general and class meetings to seek shareholder approval. The A shares will be offered to specific subscribers, including the Ministry of Finance, CNTC, and CDIC, at an initial price of RMB8.71 per share, subject to potential adjustments. The Ministry of Finance has committed to subscribe for 12,907,010,332 A Shares. The Ministry of Finance will hold approximately 35.15% of the issued share capital of the Bank. The Ministry of Finance has committed not to transfer any Shares it holds within eighteen months from the completion of the Issuance. To facilitate investor understanding, the Bank will host an online briefing on March 31, 2025. The bank has also announced a plan for shareholder dividend returns for the next three years (2025-2027).