Shanghai Pudong Bank completes $2.2 billion share placement

The bank said it placed all shares with a 1 year lock up from selling to institutional investors as other banks line up to refresh their capital base.

Pudong Bank issued 904 million new yuan-denominated A shares at 16.59 yuan each to one individual investor and eight institutions, including brokerage Haitong Securities and garment maker Youngor Group, it said in a statement published in the official Shanghai Securities News.

All investors promised to lock up the shares for one year, according to a report from Reuters.

Pudong Bank announced in April that it would use the proceeds to supplement capital as some Chinese banks rush to raise funds after a lending spree in the first half of this year reduced their capital adequacy.