On May 18, Bank Of Nanjing Co.Ltd(601009) announced that the proportion of shares held by the bank’s largest shareholder BNP Paribas and Bank of Paris (QFII) increased from 14.04% to 16.37%, with an increase of 2.33%, more than 1%.
Two days ago, the bank also made an announcement on the change of shareholders and equity. It has received the reply from Jiangsu Banking and Insurance Regulatory Bureau and agreed to the shareholder qualification of BNP Paribas, the company’s largest shareholder.
the largest shareholder of foreign capital increased its shareholding
Bank Of Nanjing Co.Ltd(601009) the latest announcement shows that based on the recognition of Bank Of Nanjing Co.Ltd(601009) value and confidence in future development, according to the requirements of the Interim Measures for equity management of commercial banks, BNP Paribas, the largest shareholder of the bank, as a shareholder with a shareholding ratio of more than 10%, the shareholding ratio of more than 15% needs to be approved by Jiangsu regulatory bureau of Bank Of China Limited(601988) Insurance Regulatory Commission in advance.
recently, BNP Paribas has obtained the approval of shareholder qualification Bank Of Nanjing Co.Ltd(601009) disclosed the announcement of Bank Of Nanjing Co.Ltd(601009) receiving the reply on equity change and relevant shareholder qualification from Jiangsu regulatory bureau of China Banking and Insurance Regulatory Commission on May 17, 2022
On May 18, Bank Of Nanjing Co.Ltd(601009) received the notification letter on increasing Bank Of Nanjing Co.Ltd(601009) shares from BNP Paribas. BNP Paribas and Bank of Paris (QFII) increased their shares by more than 1%. After this equity change, the proportion of shares held by BNP Paribas and Bank of Paris (QFII), the company’s largest shareholder, increased from 14.04% to 16.37%, with an increase of 2.33%, more than 1%.
announced that BNP Paribas promised that BNP Paribas and Bank of Paris (QFII) would not transfer their shares within five years from the date of acquisition
Zheshang Securities Co.Ltd(601878) analysis points out that from the perspective of equity structure, shareholders have successively released the signal of increasing their holdings. In the future, the situation of “chasing each other and striving for the top” will not be ruled out, and the transaction structure will be significantly improved. In the extreme case, if Nanjing state-owned assets management department wants to maintain the shareholding ratio advantage over other shareholders, the total increase space of Nanjing state-owned assets management department, France Pakistan and Jiangsu stock exchange is 1.5 billion shares, with a corresponding amount of 16.7 billion yuan, accounting for 31% of the free circulating shares.
strong desire to convert shares
The increase of major shareholders may pave the way for debt to equity swap. The reporter learned from many sources that there is a strong willingness to promote debt to equity swap in Bank Of Nanjing Co.Ltd(601009) year. As an important tool of capital supplement, convertible bonds can significantly boost the core capital of banks.
At this year’s online annual performance meeting, Bank Of Nanjing Co.Ltd(601009) ‘s management also expressed the hope to realize rapid share conversion in the continuous improvement of operating performance and stock market value, so as to provide capital guarantee.
On June 15 last year, Bank Of Nanjing Co.Ltd(601009) was approved to issue 20 billion yuan of convertible corporate bonds to the public, each with a face value of 100 yuan, issued at face value for a period of six years, and was listed and traded on the Shanghai Stock Exchange from July 1, 2021. The bonds are referred to as “Bank of South convertible bonds”.
Under the changes of macro-economic, regulatory and other environment, the capital of some banks is tight. It is hoped that with the help of debt equity swap, a debt equity hybrid capital tool, we can supplement the core capital through equity swap. Generally speaking, the bank’s convertible bonds can supplement the core Tier-1 capital after being converted into shares. The supplementary capital efficiency is stronger than that of tier-2 capital bonds and preferred shares. The issuing interest rate of convertible bonds is generally lower than that of ordinary bonds, and the specified conversion price is higher than that of positive shares at that time, which can reduce the financing cost of some banks.
At the beginning of April this year, Bank Of Nanjing Co.Ltd(601009) announcement showed that as of March 31, 2022, a total of 84916000 yuan of Bank of South China convertible bonds had been converted into A-share common shares of the company, and the cumulative number of convertible shares was 8407519, accounting for 0.0840% of the total issued A-share common shares of the company before Bank of South China convertible bonds. By the end of the first quarter, the amount of convertible bonds of Bank of South China that had not been converted into shares was RMB 19915084000, accounting for 995754% of the total issuance of convertible bonds of Bank of South China.
however, the conversion rate of convertible bonds issued by some banks was low, that is to say, the overall efficiency of these banks to supplement capital through convertible bonds was not high enough. When the proportion of convertible bonds to shares is low, because the debt component of convertible bonds is not included in the core Tier-1 capital, it can not effectively supplement the core Tier-1 capital. Some analysts pointed out to reporters that the low conversion rate of convertible bonds issued by some banks may be related to the poor performance or continuous downturn of positive stock prices in the secondary market and the small profit space expected by investors
close cooperation with foreign parties
Speaking at this year’s online annual performance conference held by the bank, mire, vice president of Bank Of Nanjing Co.Ltd(601009) foreign bank (stationed by BNP Paribas), said that BNP Paribas, as the major shareholder and long-term strategic partner of Bank Of Nanjing Co.Ltd(601009) has always paid attention to the development of Bank Of Nanjing Co.Ltd(601009) since 2005, and has always recognized the advantages of Bank Of Nanjing Co.Ltd(601009) since 2005, including location, long-term strategy, corporate culture and management ability, And adaptability and resilience to challenges.
Although affected by all aspects of the epidemic, BNP Paribas has maintained a close cooperative relationship with Bank Of Nanjing Co.Ltd(601009) . BNP Paribas also continued to provide multi-level support. For example, at the equity level, BNP Paribas actively participated in the subscription of Bank Of Nanjing Co.Ltd(601009) convertible bonds. In terms of exchanges, although the two sides could not exchange visits, they still maintained extensive and active exchanges and sharing through various ways.
in terms of business, both parties continue to promote domestic and foreign cooperation projects in enterprise retail financial market and other lines. It is worth mentioning that cooperation in the field of consumer finance has always been one of the key points of cooperation between BNP Paribas and Bank Of Nanjing Co.Ltd(601009) . “Based on the experience of BNP Paribas and Bank Of Nanjing Co.Ltd(601009) international and local consumer finance, it is also a natural choice for both parties to participate in the acquisition of Suning consumer finance. BNP Paribas will continue to closely cooperate with Antarctic bank in developing China’s leading consumer finance services in the consumer finance business.” Mille said
The first quarterly report of the bank also disclosed the progress of Bank Of Nanjing Co.Ltd(601009) acquiring the equity of Suning consumer finance. At present, the bank has signed an equity transfer agreement with relevant subjects, and the relevant acquisition needs to be approved by the regulatory authority. After the acquisition, the proportion of Suning consumer finance equity held by the bank will increase from 15% to 56%.
“The overall progress is relatively smooth, and the delivery needs to be carried out after the relevant approval is supervised. The share capital will also be increased in due time, and some arrangements will be made for the business model and internal organization of Xiaojin.” Hu Shengrong, chairman of the bank, revealed that this year the bank mainly did a good job in the basic work of gold consumption to achieve stability and further development next year.
As for the prospects of future cooperation between the two sides, BNP Paribas also said that it would continue to provide all-round support to its strategic partner Bank Of Nanjing Co.Ltd(601009) and that the two sides would jointly explore and explore new priorities of future cooperation, especially in the new economic situation in the post epidemic period.
