Postal Savings Bank of China (PSBC) has completed an A-share issuance, raising RMB130 billion with Jia Yuan Law Offices advising on the transaction.
On 17 June, PSBC issued A shares to the Ministry of Finance (MoF), China Mobile and China State Shipbuilding Corporation. The MoF subscribed to RMB117.58 billion, while China Mobile and China State Shipbuilding subscribed to RMB7.85 billion and RMB4.57 billion, respectively.
Following this issuance, the MoF will become the third-largest shareholder in PSBC, with a 15.77% stake.
Founding partner Yan Yu and senior partner Li Li led the Jia Yuan team, advising PSBC on the transaction. The joint sponsors were CICC and CITIC Securities. The joint lead underwriters included China Post Securities, CSC Financial, China Merchants Securities, China Galaxy Securities and BOCI Securities.
PSBC is a major retail bank established in 2007. It was listed on the HKEX in 2016 and on the SSE in 2019. Its largest shareholder is China Post, China’s state-owned postal service provider.
In March, the MoF announced plans to issue the first tranche of RMB500 billion in special treasury bonds this year to support the recapitalisation of major state-owned banks, including the Bank of China (BOC), China Construction Bank, Bank of Communications (BOCOM) and the PSBC.
Just four days before the PSBC issuance, BOC and BOCOM had completed A-share private placements of RMB165 billion and RMB120 billion, respectively.
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