RBS wins nod for investment in Suzhou Trust
The Royal Bank of Scotland Group (RBS), one of the largest banking and insurance holding companies in the UK, has won approval from Chinese banking regulators to acquire a nearly 20% stake in Suzhou Trust Co. It is to expand its corporate banking and wealth management services in China, sources reported.
Suzhou Trust will issue new shares to RBS in a private placement deal, said sources citing a person familiar with the matter, but unwilling to be identified.
The sources revealed that the two parties expect to make an official joint announcement in mid July for this deal.
Under Chinese regulations, a single foreign institution can hold no more than 20% of a Chinese trust company, while overseas investors can have an aggregate stake of up to 25%. Compared with other financial institutions, domestic trust companies are allowed to make equity investments in a wider range of financial sectors, including insurance, securities broking, asset management and indirect fund-raising for domestic enterprises.
Based in Edinburgh, Scotland, RBS is also a minority shareholder in Bank of China, one of the “Big Four” Chinese state lenders.
Suzhou Trust, established in 1991, is one of several major state-owned toll expressway operators.
Tags: Insurance, investment