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Nanjing Bank is trying to raise 20 billion yuan to recapitalize with convertible bonds

Nanjing’s lender banks have just begun issuing convertible bonds in excess of US $ 3 billion.

On June 15th, Nanjing Bank began issuing 20 billion yuan (about 3.13 billion dollars) in convertible bonds (Nanping Convertible Bonds) via an online channel.

According to Nanjing Bank, all proceeds from this issue will be used to support the bank’s future operational development and raise its capital adequacy ratio in accordance with the bank’s core Tier 1 capital adequacy requirements.

This is the fourth convertible bond issuance since the beginning of the year, following other regional banks such as Shanghai Bank, Hangzhou Bank and Suzhou Bank. The intense interest generated by the issuance of these convertible bonds has made analysts very optimistic about the issuance of Nanjing Bank.

The current stock price of Nanjing Bank is also higher than the price suggested by convertible bonds, which is 10.19 yuan per share compared to 10.1 yuan for convertible bonds.

Nanjing Bank is a leading regional bank in eastern China, with 88% of its operating revenue coming from the Jiangsu region.

In the first quarter of 2021, Nanjing Bank posted a net profit attributable to its parent company of 4,099 million yuan, an increase of 9.30% over the previous year.

As of the end of 2020, the company’s total assets exceeded 1.5 trillion yuan, up 12.93% from the end of the previous year.

Several other regional banks in China have announced plans to issue convertible bonds in the short term, including Chongqing Bank (13 billion yuan), Chengdu Bank (8 billion yuan) and Industrial Bank Co. (50 billion yuan). did.

Domestic analysts say to supplement the core Tier 1 capital level as Chinese banks require regulators to provide greater support to the real economy while imposing stricter capital requirements. He points out that he is pursuing the issuance of convertible bonds.

Huachuang Securities’ Zhou Guannan said there are currently 13 outstanding convertible bonds issued by banks with a total balance of approximately 200 billion yuan.


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https://www.chinabankingnews.com/2021/06/17/bank-of-nanjing-seeks-to-raise-20-billion-yuan-via-convertible-bonds/ Nanjing Bank is trying to raise 20 billion yuan to recapitalize with convertible bonds

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