Bank of China cuts conversion price of convertible bonds to RMB 2.99

By Marisa Wong

Madison, Wis., March 26 - Bank of China Ltd. will lower the conversion price of its A share convertible bonds to RMB 2.99 on March 29, according to a company announcement.

The downward adjustment was approved at an extraordinary general meeting held on Tuesday.

The adjusted price was set as the highest of (a) the average trading price of the bank's A shares for the 20 trading days prior to the meeting, which was RMB 2.96, (b) the average trading price of the A shares on the trading day immediately before the meeting, which was RMB 2.99, (c) the net asset value per share based on the latest audited financial statement, which was RMB 2.95 for the year ended Dec. 31, and (d) the nominal value per A share, which is RMB 1.00.

Prior to the extraordinary general meeting, the company disclosed that as of Jan. 30 the closing price of the bank's A shares had been lower than 80% of the then current conversion price for 15 trading days out of the previous 30 consecutive trading days, triggering a possible downward adjustment to the conversion price of the bonds.

The bank is based in Beijing.

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