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BEA Expands Core Business Through Sumitomo Share Issue
Bank of East Asia, the Hong Kong-based bank, has strengthened its core capabilities through the issuance of new shares to a Japanese partner.
BEA is expecting to raise some HK$3,301.4 million by issuing around 111.57 million new shares to Sumitomo Mitsui Banking Corporation at a subscription price of HK$29.59 per share. The agreement was made at the close of trading on 4 December at the Hong Kong Stock Exchange.
When the shares are issued, BEA's total capital adequacy ratio and Tier 1 CAR will both increase by around 75 basis points. The proceeds will be used as general working capital and to fund future expansion plans. The deal also effectively raises SMBC's stake in Bank of East Asia to 9.5 per cent.
Bank of East Asia records HK$641.5 billion ($82.7 billion) in total consolidated assets as of 30 June 2012.
