Singapore’s OCBC Bank raising $2.7b to fund China expansion

OCBC bankSingapore banking giant Oversea-Chinese Banking Corporation, or OCBC, plans to raise $2.7 billion in fresh equity to help fund its push into China, Singapore’s second-largest bank announced on August 18, undershooting expectations for the amount it had been expected to raise.

The rights issue, which is being offered at a 25 per cent discount to the closing price on August 8, will help pay for the bank’s $5 billion purchase of Wing Hang, a Hong-Kong-based bank with a presence in southern China.

OCBC intends to use the deal to boost its existing presence in the mainland and establish a platform for better capturing the growing trade flows between China and its southeast Asia home.

The deal is Singapore’s second-largest ever rights issue, according to market researcher Dealogic. Analysts had speculated that OCBC, traditionally a bank with one of the strongest capital bases, might tap investors for more to further boost its cushion.

OCBC is one of a handful Asian banks with a claim to being a regional champion. From its Singapore base it has expanded into Malaysia and Indonesia with interests also in Thailand and Vietnam. The purchase of Wing Hang Bank by ASEAN’s second-largest lender is its most ambitious to date.



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Singapore banking giant Oversea-Chinese Banking Corporation, or OCBC, plans to raise $2.7 billion in fresh equity to help fund its push into China, Singapore’s second-largest bank announced on August 18, undershooting expectations for the amount it had been expected to raise. The rights issue, which is being offered at a 25 per cent discount to the closing price on August 8, will help pay for the bank’s $5 billion purchase of Wing Hang, a Hong-Kong-based bank with a presence in southern China. OCBC intends to use the deal to boost its existing presence in the mainland and establish a platform...

OCBC bankSingapore banking giant Oversea-Chinese Banking Corporation, or OCBC, plans to raise $2.7 billion in fresh equity to help fund its push into China, Singapore’s second-largest bank announced on August 18, undershooting expectations for the amount it had been expected to raise.

The rights issue, which is being offered at a 25 per cent discount to the closing price on August 8, will help pay for the bank’s $5 billion purchase of Wing Hang, a Hong-Kong-based bank with a presence in southern China.

OCBC intends to use the deal to boost its existing presence in the mainland and establish a platform for better capturing the growing trade flows between China and its southeast Asia home.

The deal is Singapore’s second-largest ever rights issue, according to market researcher Dealogic. Analysts had speculated that OCBC, traditionally a bank with one of the strongest capital bases, might tap investors for more to further boost its cushion.

OCBC is one of a handful Asian banks with a claim to being a regional champion. From its Singapore base it has expanded into Malaysia and Indonesia with interests also in Thailand and Vietnam. The purchase of Wing Hang Bank by ASEAN’s second-largest lender is its most ambitious to date.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00