Bank Of China: 40 Billion Convertible Bonds Will Be Issued As Soon As Possible

Li Lihui, governor of Bank of China (601988) (601988) yesterday expressed the hope that the "A+H" refinancing plan will be completed within the year.

Among them, the newly approved 40 billion yuan convertible bonds will be issued as soon as possible.

Li Lihui made this statement yesterday after the shareholders' meeting of the Bank of China.

As the first big refinancing scheme approved by the four largest banks, the 40 billion yuan convertible bonds of Bank of China A shares were approved by the SFC on Tuesday, 25.

But H-share financing plan has not yet been finalized.

Li Lihui said he expected the market reaction after the issuance of 40 billion yuan convertible bonds would be good.

Due to the large fluctuation of A shares and Hong Kong stocks in recent years, coupled with the recent acceleration of IPO of the Agricultural Bank in Shanghai and Hong Kong, the larger share allotment financing schemes of other banks inevitably need to be adjusted or temporarily "give way".

As a result, the timing of major banks' refinancing starts has attracted much attention from the market.

It can be seen that the Bank of Communications (601328) (601328) A share rights issue will be held on Friday, 28 this month.

According to the previous announcement of the bank, the bank intends to adopt the "A+H" rights issue method, and the total amount of financing will not exceed RMB 42 billion yuan.

There were rumors in the early days that in order to make way for the Agricultural Bank to offer shares, the "A+H" rights allocation plan originally scheduled for the end of June will start half a month in advance and start in early June.

Last week, Guo Shuqing, chairman of Construction Bank (601939), said that CCB initially planned to implement the refinancing scheme by the end of this year to the beginning of next year, but the specific time would depend on the market conditions, which has been postponed compared with the original time.

At that time, Guo Shuqing also said that he hoped that the financing scale of about 75 billion yuan could be successfully completed according to the plan. Once the A+H rights issue was completed, CCB would not have any refinancing plan in the next 3 years.

In addition to the issue of refinancing, according to foreign reports, Li Lihui also pointed out that the Bank of China has checked the loan of the local government platform according to the requirements of the CBRC. He believes that the bank's assets risk is still controllable.

Li Lihui also said that the bank currently holds hundreds of millions of dollars in bonds such as Greece, Portugal and Spain.

In addition, Li Lihui also confirmed that the bank did buy the central bank this week, but he did not disclose the specific size.

He also said that the Bank of China has a relatively high liquidity and has been buying central bank bills for a long time. It is not bought by hard demand.

It has been reported that the Bank of China has been asked to purchase more than 20 billion yuan central bank votes in the central bank's 30 billion yuan one year central bank on Tuesday.