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February 22, 2008 |
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SHANGHAI PUDONG: Confirms Plan to Issue New Shares Shanghai Pudong Development Bank Co. has confirmed reports that it plans to issue additional shares in order to raise capital, according to local news. In a statement to the Shanghai Stock Exchange, the bank said that details and terms of the planned sale would be disclosed after a meeting of its board of directors, Xinhua relates. The board meeting date was not disclosed. The company's shareholders will later meet in March to discuss approval of the transaction. According to the People's Daily Online, "capital adequacy ratio in the Chinese partner of Citibank fell to 8.4 percent, near the required minimum level of eight percent, by the end of the third quarter last year after rapid business expansion." Analysts told Xinhua that it's reasonable to expect a CNY20 billion share sale. As previously reported, talks about the sale caused the bank's shares to fall by 10% on Wednesday's trading. Headquartered in Shanghai, China, Shanghai Pudong Development Bank Co., Ltd. -- http://www.spdb.com.cn/ -- is a commercial bank involved in personal banking, corporate banking, and inter- bank business. The bank also offers Internet banking and telephone banking. Fitch Ratings on March 12, 2007, upgraded the Support ratings of Shanghai Pudong Development Bank to 3 from 4, reflecting the improved ability of the government to support domestic financial institutions and the close relationship between the bank and the central and local governments. At the same time, the agency affirmed the bank's individual rating at D. The bank, as of May 4, 2007, also carries Moody's Ba1 rating for financial strength rating. |
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