Regulator approves ICBC's Shanghai convertible bond sale

Lender also planned a $6.6bln rights issue aside from its $3.7bln bond sale.

Industrial and Commercial Bank of China, the world's largest bank by market value, on Wednesday obtained regulatory approval for its plan to issue up to 25 billion yuan ($3.7 billion) in convertible bonds in Shanghai.

The China Securities Regulatory Commission's (CSRC) Public Offering Review Committee has given the issue the green light, the agency announced in a statement on its website (www.csrc.gov.cn).

ICBC, which unexpectedly unveiled the fundraising plan in March, aims to issue the bonds convertible into yuan-denominated Shanghai-listed shares by September, two sources close to the deal told Reuters in June.

ICBC also plans to raise up to 45 billion yuan ($6.6 billion) through a rights issue in Hong Kong and Shanghai, joining other major state-owned banks in seeking various ways to replenish capital bases depleted by last year's record lending spree.

The convertible bond sale would have an impact on the market's liquidity in the short term, analysts said.

View the full story in Reuters.