ICBC Injects Commercial Banking Business to ICBC AsiaThe Industrial and Commercial Bank of China (ICBC) announced in Hong Kong Monday that it will transfer the commercial banking business of its Hong Kong Branch to ICBC Asia for a total consideration of 3 billion HK dollars (384 million U.S. dollars).The asset injection move will enable ICBC Asia to optimize its product mix, client profile and asset portfolio and consolidate the foundation for ICBC Asia to become a leading commercial bank in Hong Kong. With a net value of 2.3 billion HK dollars (295 million U.S. dollars), the businesses to be transferred by ICBC include assets such as customer loans, investments, securities, liabilities and so on. ICBC Asia plans to issue and allot 2.12 billion HK dollars (272 million U.S. dollars) worth of new ordinary shares and convertible preference shares, 580 million HK dollars (74 million U.S. dollars) subordinated debt, and 300 million HK dollars (38 million U.S. dollars) cash to ICBC to satisfy the total consideration. When completed, ICBC will hold 75 percent of ICBC Asia's enlarged issued ordinary share capital. ICBC President and ICBC Asia Chairman Jiang Jianqing said at the press conference that the move will broaden the earnings base of ICBC Asia, and the enlarged issued share capital will also further strengthen the financial position of ICBC Asia. Jiang pointed out that ICBC Asia will continue to engage in and further expand the retail, commercial, corporate and treasury businesses. It will also capitalize on ICBC's network of over 30,000 branches in China and overseas to grow trade finance, remittances, clearing and other transactional banking businesses, he added. ICBC is the controlling shareholder of ICBC Asia. It successfully acquired Union Bank of Hong Kong in July 2000 and renamed it in August as Industrial and Commercial Bank of China (Asia) Limited (ICBC Asia). |
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