* Lender plans to issue as many as 3.4 bln H-shares
* Plans overallotment if demand good
* Smaller China banks seeking to boost capital in face of
(Add details, background)
By Lu Jianxin and Pete Sweeney
SHANGHAI, April 29 China's state-backed Bank of
Beijing Co Ltd is planning a Hong Kong share
offering that could raise more than $4 billion, the latest
mainland bank seeking to boost its capital as new rules are
Chinese lenders are also under pressure to bolster capital
bases as slower economic growth in the first quarter saw
non-performing loan ratios rise at many Chinese banks.
The medium-sized lender, which counts Dutch bancassurer ING
as its biggest shareholder, plans a base offering of up
to 3.4 billion H-shares on the Hong Kong Stock Exchange's main
board, pending approval by shareholders and regulators, it said
in a filing late on Monday.
Based on the bank's Shanghai shares, the offering could
raise around 26 billion yuan ($4.2 billion). Its shares in
Shanghai were 0.9 percent weaker in early trade.
There is also an overallotment option if demand proves
China Banking Regulatory Commissions began phasing in
stricter capital adequacy requirements last year to get the
domestic banking system in compliance with global rules on bank
capital known as Basel III. Last year, Bank of Chongqing Co Ltd
and Huishang Bank Corp Ltd raised funds
through listing in Hong Kong.
Qiang Xin, Bank of Beijing's chairman of its board of
supervisors, was quoted by the official China Securities Journal
as saying that the Hong Kong offering could raise its capital
adequacy ratio by 3 percentage points and could satisfy the
bank's capital demand for 5 years.
The Bank of Beijing plans to convene a shareholders' meeting
on May 20 to discuss the plan, and it will complete the issue
within a period granted by shareholders, which is typically one
year in China.
Bank of Beijing listed in 2007 and conducted another
fund-raising via a private placement in Shanghai, raising 11.8
billion yuan in 2012.
But mainland's stock markets have been
among the world's worst performers in recent years, making it
increasingly difficult for listed companies to tap the Shanghai
and Shenzhen exchanges for funds.
Beijing has also encouraged firms to tap foreign capital
markets to avoid diluting domestic indexes further.
The offer will be managed by Goldman Sachs Morgan
Stanley, IFR, a Thomson Reuters publication, reported.
On Monday, Bank of Beijing reported a 15.3 percent rise in
its 2013 net profit to 13.5 billion yuan ($2.16 billion), while
its first quarter earnings climbed 9.5 percent to 4.5 billion
($1 = 6.2530 Chinese Yuan)
(Editing by Stephen Coates and Edwina Gibbs)