China Everbright Bank (CEB) said yesterday it expects to finish its financial restructure by the end of September and will seek a public listing as early as next year.
"The detailed restructure plan needs further approval from CEB's board of directors," Tang Shuangning, the new chairman of China Everbright Group, said yesterday. "We expect to finish the financial restructure in 50 days."
Local media reported earlier that the State Council had approved a 20-billion yuan investment from State-owned agency Central Huijin Investment Co Ltd.
"It is estimated that the capital injection will lift CEB's core capital adequacy ratio to 5.03 percent," an unnamed source close to the bank told China Daily yesterday.
With outstanding loans of 352 billion yuan in 2006, the bank's core capital adequacy ratio is far below the regulatory limit of 4 percent. The lender's non-performing loan ratio was 7.58 percent in 2006. It has not released financial results in the last three years.
CEB has been talking with dozens of foreign strategic investors seeking further investment, said Xie Zhichun, vice-president of CEB, yesterday.
China Everbright Group, a State-owned financial conglomerate, is now the bank's largest shareholder with a 24.16 percent stake. Its Hong Kong-listed unit China Everbright Ltd owns a 21.4 percent stake in the bank.
CEB, together with China Everbright Securities and Sun Life-Everbright Assurance Co, account for 98 percent of the group's assets, which totaled 550 billion yuan at the end of 2005. China Everbright Securities, a broker under China Everbright Group, is also gearing up for an initial public offering in the first half of next year.
The group reported non-financial assets, including its Hong Kong-listed China Everbright International Ltd, of around 10 billion yuan.
It initially sought a cash injection in 2005, prompting a series of reviews by the central bank before the final plan was submitted to the State Council.
(China Daily August 14, 2007)
