OREANDA-NEWS. December 12, 2012. The Bank of East Asia (“BEA”) has entered into an agreement with its strategic partner, Sumitomo Mitsui Banking Corporation (“SMBC”) to raise approximately HKD3,301.4 million through the issue of some 111.57 million new shares at a subscription price of HKD 29.59 per share, reported the press-centre of BEA.

BEA entered into a subscription agreement with SMBC after the close of trading on the Stock Exchange of Hong Kong today. Upon the issue of the new shares, BEA’s total capital adequacy ratio (“CAR”) and Tier 1 CAR will both increase by approximately 75 basis points. BEA intends to apply the proceeds as general working capital and for future expansion of the Group.

Following the subscription, SMBC’s holding in BEA will increase to 9.5% of BEA’s enlarged share capital.