By Marisa Wong
Madison, Wis., Nov. 13 – Agricultural Bank of China Ltd. announced it raised RMB 40 billion through the issuance of preference shares.
The preferreds were issued at par with an initial coupon of 6%. The coupon rate will be reset every five years.
The preferreds are not putable but are callable on any dividend distribution date beginning five years after the issue date, which was Oct. 31.
As previously reported, the bank received approval from the China Banking Regulatory Commission to issue up to 800 million shares for proceeds of up to RMB 80 billion. The issuance is to be conducted in multiple tranches, with the tranche for 2014 capped at 400 million shares for proceeds of up to RMB 40 billion.
Proceeds will be used to replenish the Beijing-based bank’s tier 1 capital.
| Issuer: | Agricultural Bank of China Ltd.
|
| Issue: | Preference shares
|
| Amount: | RMB 40 billion
|
| Coupon: | 6% initially, reset every five years
|
| Price: | Par of RMB 100
|
| Call option: | On any dividend distribution date beginning five years after issue date
|
| Put option: | No
|
| Announcement date: | Nov. 13
|
| Settlement date: | Oct. 31
|
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