Money

Bank of China announces details of rights issue

(Agencies)
Updated: 2010-11-03 15:22

HONG KONG - Bank of China Ltd (BOC) on Tuesday announced the terms for its previously announced rights issue as it moves to raise money to replenish capital after a 2009 lending spree, Reuters reported on Wednesday.

Cautious monetary policy urged Related readings:  BOC to raise up to $9b in rights issue  BOC posts 27% rise in profit in 1st 9 months

BOC proposed issuing up to 7.6 billion H shares at HK$2.74 (35 cents) per share, on a basis of one rights share for every 10 shares held, Reuters cited the lender announcement as saying.

The bank also proposed issuing up to 17.8 billion A shares at 2.36 yuan (35 cents) per share, on a basis of one rights share for every 10 shares held.

The bank's A shares closed at 3.61 yuan on Monday, while its H shares closed at HK$4.79.