Deutsche Bank has signed a binding agreement to subscribe to approximately 265.6m newly issued shares in Hua Xia Bank, a Beijing-based commercial bank, for a total subscription price of RMB3,909m. Deutsche Bank’s subscription is part of a private placement of Hua Xia Bank shares to its three largest shareholders with an overall issuance value of RMB11.6 billion.
This investment will increase Deutsche Bank’s equity stake in Hua Xia Bank to 13.7% of issued capital from 9.9% previously.
Rainer Neske, head of private and business clients and a member of Deutsche Bank’s group executive committee, said: “This additional investment further demonstrates our commitment to Deutsche Bank’s relationship with Hua Xia Bank which has been very positive and with significant potential for further development.”
Colin Grassie, CEO of Deutsche Bank Asia Pacific, said: “Deutsche Bank’s partnership with Hua Xia Bank is an important part of our strategy to secure direct participation in the development of China’s financial services market.”
