Shengjing Bank Hopes to Supplement Tier-1 Capital Using Share Conversion Agreements

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Liaoning province lender Shengjing Bank (盛京银行) plans to boost its tier-1 capital levels by means of share conversion agreements.

On 31 August Shengjing Bank announced that it will submit an application with the Liaoning province government to undertake 15 billion yuan in share conversion agreements matched to local government special bonds, with all proceeds to be be fully used for the supplementation of its tier-1 capital.

Shengjing Bank said that if approved, the agreements will help to improve its capital standing, optimise its capital structure and raise its ability to service the real economy, with a particular focus on micro, small and medium-sized enterprises.

Shengjing Bank said that it would further strengthen its market position of “servicing the local economy, servicing small and medium-sized enterprises, and servicing urban and rural households”.