Beijing Bank &Nbsp; Intends To Issue Additional Financing Nearly 11 Billion 800 Million

There will always be many surprises in the market, for example, capital seems to be plentiful.

The announcement shows that the bank intends to raise funds by non-public offering of not more than 11 billion 800 million, the issue price is 10.88 yuan / share (that is, 90% of the average A shares traded on the 20 trading days before the benchmark price), 9 enterprises will participate in the subscription, Huatai motor, CITIC securities, Taikang Life Insurance and State Development Investment Corp subscribed 3 billion 500 million, 3 billion, 2 billion, 800 million respectively; China Heng Tian, Huaneng capital, southern industrial assets, Shaanxi coal group and Li Qin investment subscribed 500 million respectively.

By the end of 2010, the Bank of Beijing had a capital adequacy ratio of 12.62%, and its core capital adequacy ratio remained above 10%, and its capital position was better than that of many listed banks. Before that, there was no news that Beijing bank could raise funds.

In this regard, the Bank of Beijing explained that the bank's consistent style requires that capital adequacy ratio be maintained at a relatively high level.

The capital management planning objective of the bank's 9 day announcement is to maintain the capital adequacy ratio and core capital adequacy ratio at no less than 12% and 9% at the end of the year, respectively, and by the end of 2010, the bank's capital adequacy ratio has dropped to 12.62%.

If it fails to complete refinancing this year, its business development in 2012 will be subject to capital constraints.

If the issue is successful and released within the year, the bank's capital adequacy ratio will be significantly improved. Market analysts believe that the private placement will raise its capital adequacy ratio by 2-3 percentage points.

In addition, it is worth noting that, as the largest shareholder and strategic investor of Beijing bank, ING did not take part in the private placement. As of now, the proportion of ING holding shares of Beijing bank is 16.07%. Not participating in private placement means that its shareholding ratio will be diluted.

In response to this, Mr. Yan Bing Zhu, chairman of Beijing bank, said in response to our reporter's question that ING did not take part in the main consideration of foreign exchange approval factors. That is, the current foreign exchange approval process is more complicated and the approval time may exceed half a year, while Beijing bank hopes to complete the refinancing within 8 years.

Because it expects that with the expansion of business, capital consumption and regulatory standards will increase next year, commercial banks will set off a new round of financing climax and market pressure. And this year, the pressure of bank refinancing is small. The Bank of Beijing chooses to refinance at this time.

In 2005, the Bank of Beijing introduced the strategic investor ING group.

In 2010, the two sides successfully signed a strategic cooperation package, extending the cooperation period by five years, and expanding the scope of cooperation to green banks, insurance and other fields, and deepening strategic cooperation between China and foreign countries.

Large shareholders do not participate, providing more opportunities for other enterprises to intervene.

For example, Huatai Automobile, which originally planned to spend about 1 billion 200 million to participate in the private bank's private placement, did not expect the Minsheng Bank's private placement scheme to be modified after the shareholders questioned. Huatai's involvement in financial institutions also died halfway. This time, the Beijing bank's private placement was granted the opportunity to intervene in financial institutions, and the largest amount of money was spent.

The industry performance was also released from 27 days to 9 days. The annual report shows that the bank realized a net profit of 6 billion 803 million yuan attributable to shareholders of the parent company in 2010, an increase of 20.75% compared with the same period last year, and the per capita profit reached 1 million 50 thousand yuan.

The balance of non-performing loans at the end of the year was 2 billion 321 million yuan, 475 million yuan lower than the beginning of the year, and the proportion of non-performing loans was 0.69%, which was 0.33 percentage points lower than the beginning of the year.

At the same time, the bank also increased the provision of strength, at the end of the year, the provision coverage rate increased to 307.12%, an increase of 91.43 percentage points from the end of last year.