Minsheng Bank'S Refinancing Scheme Was Approved By Shareholders' Meeting.

Yesterday (May 4th), Minsheng Bank [6.03 -2.43% share "announcement" that the bank issued A shares, Switching Company debt [129.18 0.02%] and the new issue of H-share scheme was approved by the shareholders' meeting.

This means that

At the beginning of this year, Minsheng Bank has announced that it decided to issue no more than 4 billion 700 million new shares to specific objects by means of non-public offering, and the amount of financing will reach 21 billion 500 million yuan.

But this led to many doubts in the market.

At the end of 2, Minsheng Bank immediately adjusted the refinancing scheme.

According to the new refinancing scheme, Minsheng Bank plan

Comparing the old and new two refinancing schemes, we can see that the financing scale of the new scheme has increased, but the quality of capital is slightly inferior.

According to the announcement, the total refinancing of the new scheme is 29 billion yuan, which is 7 billion 500 million yuan more than the 21 billion 500 million yuan of the old plan.

In terms of capital quality, convertible bonds are subsidiary capital and common stock belongs to core capital.

Before convertible bonds were converted into shares, 20 billion yuan was added to the subsidiary capital to raise capital adequacy ratio, but it did not help increase the core capital adequacy ratio.

However, the old schemes involve capital in common stock, which is directly included in core capital and core capital adequacy ratio.

Obviously, compared with the 20 billion yuan convertible bond, this supplementary method will get instant results.

At present, the capital index of Minsheng Bank has already sounded the alarm: at the end of 2010, the capital adequacy ratio and core capital adequacy ratio of Minsheng Bank were 10.44% and 8.07% respectively.

The above two indicators are close to the regulatory red line, and the need to replenish capital is urgent.