Temasek confirms investment in CCB

Temasek confirms investment in CCB

SINGAPORE: Temasek Holdings, the Singapore government's investment arm, confirmed on Tuesday it is investing in China Construction Bank (CCB), the country's third largest lender.

It declined to give further details pending approval from regulatory authorities.

"We are pleased to have this opportunity to invest in China Construction Bank," Temasek spokeswoman Rachel Lin told AFP, confirming reports out of China that a deal had been struck.

Earlier Tuesday, state-owned CCB said it had sealed an agreement for Temasek to buy US$1 billion worth of shares during the bank's planned public listing.

The investment, made through Temasek's wholly-owned subsidiary, Asia Financial Holdings (AFH), would also buy some of CCB's existing shares, subject to regulatory approval.

"AFH will invest $1 billion at the IPO price during CCB's planned international IPO and will purchase existing shares from China SAFE Investments Ltd, subject to regulatory approvals," CCB said in statement.

Temasek, set up in 1974 as one of the Singapore government's main investment firms, has been stepping up its foreign investments in recent years, especially in the region.

It now manages a portfolio worth S$90 billion (US$53 billion) with stakes in everything from banks to telecom companies, airlines to energy firms. -- AFP