Bank of China (BOC) and Bank of Communications (BOCOM) have completed targeted equity offerings, raising a total of RMB285 billion. King & Wood Mallesons (KWM) served as the special legal adviser to both state-owned banks for the transactions.
On 13 June, BOC issued A shares to China’s Ministry of Finance (MoF), raising RMB165 billion. Concurrently, Bank of Communications (BOCOM) raised RMB120 billion through A-share issuances to the MoF, China National Tobacco and Shuangwei Investment.
The MoF subscribed to RMB112.42 billion worth of BOCOM shares, while China National Tobacco and Shuangwei Investment subscribed to RMB4.58 billion and RMB3 billion, respectively.
KWM partners Zhou Ning and Liu Sijia led the team handling the BOC issuance, while partners Su Zheng and Liu Dongya dealt with matters involving the BOCOM project.
For BOC’s issuance, the joint sponsors were BOC International Securities and CITIC Securities, with joint lead underwriters including BOCI Securities, CITIC Securities, Guotai Junan Securities, Huatai Securities, China International Capital Corporation and CSC Financial.
For BOCOM’s issuance, the joint sponsors were Guotai Junan Securities and CSC Financial, with joint lead underwriters comprising Guotai Junan Securities, CSC Financial, CITIC Securities, GF Securities, Shenwan Hongyuan Securities, and Guosen Securities.
In March, the MoF announced the issuance of the first tranche of RMB500 billion in special treasury bonds this year to bolster the core tier 1 capital of major state-owned banks, including the BOC, BOCOM, China Construction Bank and Postal Savings Bank of China.
This equity offering marks one of the initial achievements of the MoF’s support measures.
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