By Marisa Wong
Madison, Wis., March 18 – Agricultural Bank of China Ltd. announced it raised RMB 40 billion through another issuance of preference shares.
The preferreds were issued at par with an initial dividend of 5˝%. The dividend 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 March 6.
As previously reported, the bank received approval from the China Banking Regulatory Commission to issue in multiple tranches up to 800 million shares for proceeds of up to RMB 80 billion. The first tranche, totaling RMB 40 billion, was completed in November.
Proceeds will be used to replenish the Beijing-based bank’s tier 1 capital.
| Issuer: | Agricultural Bank of China Ltd.
|
| Issue: | Preference shares, second tranche
|
| Amount: | RMB 40 billion
|
| Dividend: | 5˝% 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: | March 18
|
| Settlement date: | March 6
|
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