Singapore\\\'s OCBC bank to raise $2.7 billion in rights issue

Singapore's Oversea-Chinese Banking Corp (OCBC) said Monday it plans to raise $g$3.37 billion ($2.70 billion) in a rights issue to boost its balance sheet following its takeover of Hong Kong's Wing Hang Bank. OCBC said in a statement it has received in-principle approval from the Singapore Exchange Securities Trading Ltd for its plan to issue 440.05 million new ordinary shares priced at Sg$7.65 each. The offer is at a 25.0 per cent discount to Friday's closing price of Sg$10.20. OCBC said the rights issue ‘will enable the company to balance its sheet and enhance the financial flexibility of the group’ following its purchase of Wing Hang for $5.0 billion. The Singaporean lender, one of Southeast Asia's largest listed banks, in a statement last month said it owns 98 percent of Wing Hang. OCBC said the takeover of Wing Hang will provide it with a platform to grow its yuan-denominated businesses. Hong Kong is the world's biggest offshore market for the yuan, which is gaining international significance in tandem with China's growing economic might, according to AFP.