State-owned nuclear giant China General Nuclear Power Corporation (CGN) was officially recognized as a shareholder of Guilin Bank with CGN completing the purchase of shares worth 300 million yuan ($43.478 million) recently.
According to the agreement, CGN Capital Holdings Co Ltd, a subsidiary of CGN, subscribed 300 million shares of Guilin Bank, accounting for 10 percent of its total equity capital. The fund was put in place in December 2016.
CGN began negotiation with Guilin Bank in 2015, when the bank was seeking excellent domestic investors and started its new round for capital increase.
According to CGN’s chief accountant Shi Bing, the company was very optimistic about Guilin Bank’s development prospects, market power and growth potential. Meanwhile, the Guangxi-based Guilin Bank appreciated CGN’s brand image, business philosophy, global development, financial strength, and the rigorous risk management.
The high mutual trust and sincerity between the two sides has laid a good foundation for the promotion of strategic cooperation, and has also received strong support from the executives of Guilin Bank, the Guilin municipal government, Guangxi’s banking regulatory commission and the bank’s major shareholders.
As part of the agreement, CGN and Guilin Bank will also cooperate on credit, capital, corporate governance, IT, risk management, financial leasing, personnel exchanges, brand promotion and licensing resource development. The two sides have launched a group of cooperation projects on funds, corporate governance, and human resources.
The investment in Guilin Bank will help improve CGN’s strategic financial layout and enrich its diversified development strategies, CGN President Zhang Shanming said.
In addition, the company will use the tie-up as an opportunity to deepen cooperation with the Guilin municipal government, laying a foundation for future participation in local real economy, Zhang added.
CGN is a world famous clean energy specialist. It is the largest nuclear power operator in China and the fifth largest in the world. With the total installed capacity of wind power exceeding 10 GW, it was listed among China’s top five wind power operations. It is also one of the top three players in solar power in China.
Guilin Bank has maintained a fast and stable development in recent years and by the end of 2016, its assets had reached about 200 billion yuan. The bank aims to prompt leap-frog development with the investment of CGN as well as its own financial strength, management and brand’s reputation.