SPD BANK(SH:600000) Shang Hai Zheng Quan Bao·2025-10-28 16:10Core Viewpoint - The announcement by Shanghai Pudong Development Bank (SPDB) regarding the maturity and redemption of its convertible bonds signifies a successful conclusion to the largest issuance of convertible bonds in history, with a high conversion rate of 99.67%, which will significantly enhance the bank's capital strength [2][5][7]. Summary by Sections Convertible Bond Details - SPDB issued 50 billion yuan (approximately 500 million) in convertible bonds on November 15, 2019, with a six-year term and entered the conversion period on May 4, 2020 [6]. - As of October 27, 2025, a total of 49.837 billion yuan (approximately 498.37 million) of the convertible bonds have been converted into common stock, representing 13.4701% of the total common shares outstanding prior to conversion [6]. - The remaining unconverted amount is 1.63 billion yuan (approximately 1.63 million), accounting for 0.3258% of the total issuance [6]. Impact on Capital Strength - The high conversion rate of 99.67% exceeded market expectations and is expected to significantly bolster SPDB's capital strength [7]. - The conversion will lead to an increase in the bank's total share capital, enhancing its core Tier 1 capital and supporting sustainable high-quality development [7]. Short-term Effects - The increase in total share capital may dilute earnings per share in the short term, but the impact on dividend yield is expected to be limited [9]. - The capital replenishment is positioned to support SPDB's credit layout and strategic deepening in key areas [9]. Shareholder Support - The conversion process has been supported by shareholders and various "white knight" investors, which played a crucial role in achieving the high conversion rate [10]. - Notable investments from entities such as China Cinda Asset Management and Orient Asset Management have occurred since June, with significant shareholdings being converted into common stock [11][12]. Strategic Investor Involvement - The timeline of events shows that strategic investors have actively participated in the conversion process, with Cinda and Orient increasing their stakes through the conversion of bonds [12]. - China Mobile, as the second-largest shareholder, has also engaged in multiple large-scale conversions, increasing its stake to 18.18% [12]. Management's Execution - The orderly arrangement of the conversion process reflects the management's determination and execution capability in promoting capital replenishment [12]. - The involvement of strategic investors and major shareholders indicates strong confidence in the long-term development of SPDB [12].