June 14, 2011

China Everbright Bank plans to raise about $6 billion in a Hong Kong initial public offering, Asia's biggest so far this year, braving choppy equity markets that have dampened demand for new issuances.

China Everbright, which raised $3.2 billion through a Shanghai listing last year, plans to issue 10.5 billion new shares, according to a term sheet seen by Reuters on Tuesday. The stock sale would be equivalent to 23.6 percent of Everbright's enlarged capital.

China's mid-sized banks are in need of funds to replenish their balance sheets after strong lending growth over the past year thinned their core capital ratios. Several other banks, including Guandong Development Bank and Citic Bank, are also planning to raise capital later this year.

Source
Reuters