Bank of Communications plans $17bn private share placement

Bank of Communications (SSE:601328) has announced plans for a second extraordinary general meeting of shareholders, along with first A-share and H-share class meetings, to vote on a proposed private placement. The bank intends to issue no more than 13,777,267,506 A-shares to specific investors, including the Ministry of Finance, China Tobacco, and China Shuangwei Investment. The share price is set at CNY 8.71 per share, representing at least 80% of the average trading price in the 20 trading days before the board resolution. The total fundraising target is CNY 120 billion. Proceeds will be used to strengthen the bank's core tier-one capital. The Ministry of Finance plans to subscribe for CNY 112.4206 billion, China Tobacco for CNY 45.7994 billion, and China Shuangwei Investment for CNY 30 billion. The plan is subject to shareholder and regulatory approvals.