The Bank Of China 40 Billion Convertible Bond Plan Was Approved Yesterday.

The information released yesterday by the SFC website showed that bank of China (601988) (601988) had an application for issuing convertible bonds in the A shares of not more than 40 billion yuan, which was approved on the same day.

This is also the four largest bank's first refinancing scheme approved by the big line.

In addition, according to the information released by the SFC website, the Bank of Communications (601328) (601328) A share rights issue will be held on Friday, 28 this month.

Pending approval of convertible bonds

Due to the low capital adequacy ratio and low loan to deposit ratio, Bank of China is the largest capital pressure and the earliest bank to disclose the refinancing scheme.

As early as January 22nd this year, Bank of China announced that it would issue no more than 40 billion yuan RMB convertible bonds in the A share market and a H-share financing scheme that does not exceed 20% of the total share capital.

Subsequently, the plan was approved at the shareholders' meeting held in March 19th.

According to the media quoted authoritative sources close to the Bank of China, the Bank of China is hoping that the issue of convertible bonds issued by A shares can be safely settled as early as possible before the H-share plan is outstanding.

According to the sources close to the paction, it has been confirmed that after the approval of the trial, the bank will have to wait for "a week" to get the listed approval of the securities and Securities Commission to issue convertible bonds.

According to the notice issued by the Bank of China, the initial conversion price of convertible bonds should not be lower than the average price of the company's stock and the previous trading day before the 20 day of the announcement of the prospectus, and an appropriate conversion premium can be set up.

Qilu Securities said that convertible bonds could exist in the form of creditor's rights before pferring shares. In addition to increasing interest expenses, the rights and interests of the original shareholders would not be diluted. The index of ROE (net assets yield) and PE (P / E ratio) should not be pressure. If the business development was replenish after capital was replenish, the increase of income would increase the interests of the original shareholders.

"Although some or all holders of convertible bonds can convert convertible bonds into company stocks, the dilution of their original shareholders' interests is not a one-off or gradual dilution, so the impact has also been significantly reduced."

Qilu Securities Analysis said.

Compared with the A shares financing plan has basically completed, investors are most concerned about whether the issue of issuing bank shares or whether the issuance of shares has not yet been finalized.

According to media reports, the views of the parties have not yet been unified for the final choice of placement (i.e. the issuance of shares) or the issue of shares to the old shareholders (i.e. rights issue). Ultimately, which scheme will win, to a certain extent, depends on the time when the major shareholder Central Huijin Investment Company (hereinafter referred to as Huijin) will participate in the refinancing fund.

In mid April, Bank of China has selected 5 H-share underwriters, including BOC, Jiayin international, ICBC international, Bank of America and Credit Suisse.

The rights allotment scheme will be held on Friday.

Bank of Communications (market, information, commentary) A share financing plan will be held on the 28 th of this month.

According to the previous announcement, Bank of communications refinancing will take the A%2BH rights issue. The allotment ratio is no more than 1.5 shares for every 10 shares, and the total amount of financing will not exceed RMB 42 billion yuan. After deducting the relevant issuance fees, the raised funds will be used to replenish the capital of the Bank and raise capital adequacy ratio.

Bank of communications 42 billion yuan financing scale, after Construction Bank (601939) and Bank of China.

In this regard, Wang Mingfei, an analyst with Orient Securities banking, pointed out that "the largest shareholder of the banking department and the HSBC plus H-share will digest 67% of the total 42 billion yuan, so that A shares only need to bear the scale of 33% yuan or 14 billion yuan, and the market has already had expectations, so the impact on A shares should be relatively small."

After the basic scale of each bank's financing has been basically delineated, the time window for financing is most affecting market nerves.

According to media reports, the current competition for time windows is still fierce. All kinds of enterprises waiting for financing want to find the right time window as early as possible.

According to the report, even if the Bank of China gets refinancing approval, the start-up time will still depend on the market conditions and there is some uncertainty.

It is worth mentioning that there were rumors in the early days that in order to make way for the Agricultural Bank to offer shares, the "A%2BH" rights allocation plan originally scheduled for the end of June will start half a month in advance and start in early June.