BEIJING – Agricultural Bank of China (ABC) and Industrial and Commercial Bank of China (ICBC) on Sunday announced plans to raise up to a combined 260 billion yuan (about $38.4 billion) through A-share issuances to designated investors to replenish their core Tier-1 capital.

ABC said in a filing with the Shanghai Stock Exchange that it plans to issue A-shares to China's Ministry of Finance, China National Tobacco Corporation and its relevant subsidiaries, with total proceeds of up to 160 billion yuan.

After deducting issuance expenses, all proceeds will be used to replenish the bank's core Tier-1 capital. The final fundraising amount will be subject to the issuance plan approved by regulatory authorities, according to ABC.

ICBC said separately that it plans to raise up to 100 billion yuan via an A-share issuance to the Ministry of Finance, China National Tobacco Corporation and related subsidiaries.

The bank said the net proceeds will also be used entirely to replenish its core Tier-1 capital. The capital increase will be implemented after completing the required internal and external approval procedures.