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

By Gaurav RaghuvanshiFeaturesDow Jones Newswires

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.

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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)