Bank of Communications plans raising $3.7bln

Funds to support balance sheet could reach up to $5.85 billion as amount is not yet finalised.

Bank of Communications (BoCom) is wooing investment banks to submit plans for a fund raising exercise estimated at 25 billion yuan ($3.66 billion) to bolster its stretched balance sheet, a newspaper reported on Wednesday.

BoCom China's No. 5 lender, had sent invitation letters to investment banks and a beauty pageant will be held as early as next week, Apple Daily reported.

The A and H-share fund raising plan could raise 25 billion yuan ($3.66 billion) and the bank will not rule out the chance of issuing new shares, the newspaper quoted the invitation letter as saying.

However, the form and final amount of fund raising has not been finalised and it could eventually be increased to 40 billion yuan ($5.85 billion), it said.

View the full article in Reuters.

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