Feb. 7, 2007 (China Knowledge) - China Minsheng Bank, the only non state-owned bank in China, plans to raise about RMB 7.65 billion from a private placement to replenish capital.

The bank plans to sell two billion new shares to no more than 10 existing and new institutional investors next week, said the Beijing-based bank said in a statement to the Shanghai Stock Exchange.

The share price will be set at no less than RMB 3.825 each, or 90% of the 20-days average price before Jul 17, when the placement was approved in principal. Minsheng Bank intends to use the proceeds to continue granting loans after its lending expanded about 60% annually between 2001 and 2005.

Minsheng also said that any single investor will be allowed to ask for a maximum of 600 million shares and those who commit to holding the stock for a longer period will have priority in purchasing shares.

One interested party is Temasek Holdings, a US$65 billion Singapore government fund that wants to raise its stake in Minsheng, as senior managing director of Temasek's strategic development department Tow Heng Tan had said last year.

Minsheng bank on Jan. 21 said its profits increased by about 40% in 2006. The bank reported RMB 2.7 billion of net income in 2005.