Singapore's OCBC Bank to raise stake in Bank of Ningbo

A man passes by Bank of Ningbo?on?Aug 4, 2011 in Shanghai. Singapore's OCBC Bank has agreed to raise its stake in China-based Bank of Ningbo from 15.34 percent to 20 percent. [Photo/Asianewsphoto]

SINGAPORE - Oversea-Chinese Banking Corp Ltd, or OCBC Bank, one of the three largest home-grown lenders in Singapore, has agreed to raise its stake in China-based Bank of Ningbo from 15.34 percent to 20 percent, the bank said on Tuesday.

The transaction, worth 1.8 billion yuan ($306 million), involves the subscription of new shares placed by the Bank of Ningbo to its substantial shareholders.

The deal is expected to be completed by the third quarter of 2014. It is still subject to approval by regulators and shareholders.

OCBC Bank said the transaction will be funded through internal resources.

OCBC has been in a partnership with Bank of Ningbo since 2006.

Darren Tan, chief financial officer of OCBC Bank, said China's growing connectivity with the region and the rest of the world in terms of trade, wealth and capital flows, and the increasing internationalization of its currency translate into excellent prospects for the bank to grow and develop its business.

"Therefore, banking with Chinese companies, onshore and offshore, and developing the ability to tap into the fast growing offshore yuan market will remain a key focus for us," Tan said in a statement.

OCBC Bank recently also announced that it was in exclusive talks to buy Hong Kong-based Wing Hang Bank in a deal that could be worth over $5 billion.