Busan Bank raises 200 bln won to boost capital

SEOUL, March 12 (Yonhap) -- Busan Bank said Thursday it has raised 200 billion won (US$133.5 million) through share offerings to boost its capital base.

The stock sales are aimed at raising its capital adequacy ratio to brace for a
potential climb in its default rate, Busan Bank said in a statement.
Following the offerings, its tier-one capital ratio, a core measure of financial
strength, is expected to reach 9.3 percent, with its capital adequacy ratio
climbing to 13.9 percent, it said. As of the end of December, the lender's
tier-one ratio stood at 8.43 percent, with its capital adequacy ratio at 13.19
percent.
Local lenders have been making efforts to bolster their capital bases as the
slowing economy and a corporate restructuring drive are increasing the number of
bad loans, compromising their financial health.