Scotiabank , IFC to buy 25 pct of China's Dalian City Commercial Bank - report |
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Wed, 17 Jan 2007 01:03
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BEIJING (XFN-ASIA) - Bank of Nova Scotia (Scotiabank) and the International Finance Corp (IFC) have reached an initial agreement to pay over 2 bln yuan for a combined 25 pct of China's Dalian City Commercial Bank, the official Shanghai Securities News reported.The newspaper cited sources as saying that Scotiabank will become a strategic investor in Dalian Commercial Bank with a 19.99 pct stake, while the IFC will become a financial investor with a 5 pct stake.In 2004, Soctiabank and IFC also agreed to buy a 25 percent stake in Xi'an City Commercial Bank in northwestern China. TAfter the introduction of foreign investors, Dalian City Commercial may seek a listing in Hong Kong or Shanghai in 2008, the report said.The bank also plans to issue subordinated debt or hybrid bonds soon, aiming to raising its capital adequacy ratio further, the report said, although no details have been determined.At the end of 2006, Dalian City Commercial Bank had assets of 61.1 bln yuan, with a CAR of 7.46 pct and a non-performing loan (NPL) ratio of 4.2 pct.The report added that the bank has been encouraged by regulators to change its name to Dalian Bank around the lunar new year in mid-February, which may indicate it will expand outside its current area of operations.(1 usd = 7.79 yuan)zachary.wei@xfn.com
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