Aug
25
China Citic Bank to Raise $6 Billion After Rapid Asset Expansion
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Citic Bank’s core Tier-1 ratio fell to 8.89 percent as of June
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Lender’s balance-sheet expansion ‘unsustainable’: analyst
China Citic Bank Corp. plans to raise as much as 40 billion yuan ($6 billion) by selling bonds convertible into yuan-denominated shares after an expansion in assets that one analyst describes as “unsustainable.”
The money will fund growth and ultimately replenish the bank’s core Tier-1 capital, the Beijing-based lender said Thursday, after its core Tier-1 ratio fell to 8.89 percent as of June 30 from 9.12 percent six months earlier.
It’s the first convertible bond sale in the onshore market by a Chinese lender in more than three years…
China Citic Bank to Raise $6 Billion After Rapid Asset Expansion
