China Merchants Bank to Sell US$1 Billion Worth of 4.40% Perpetual Preference Shares

China Merchants Bank Co. Ltd. (3968.HK) Friday said it plans to sell US$1 billion worth of non-cumulative perpetual offshore preference shares.

China Merchants Bank has signed a subscription agreement with banks including CMB International Capital, HSBC, China Merchants Securities and Citigroup to manage the sale, according to an announcement to the Hong Kong Exchange.

The perpetual securities will accrue dividend at a rate of 4.40% per annum. The proceeds will be used to boost the company's capital structure, China Merchants Bank said.

Write to Gaurav Raghuvanshi at gaurav.raghuvanshi@wsj.com

(END) Dow Jones Newswires

October 19, 2017 20:23 ET (00:23 GMT)