First foreign investment in a Chinese rural co-operative bank
China – LAWFUEL – Press Release Service – Global law firm Clifford Chance has advised Dutch banking group Rabobank and International Finance Corporation (IFC) on their joint acquisition of a 15% stake in United Rural Cooperative Bank of Hangzhou (URCB). The deal is the first foreign investment in a Chinese rural co-operative bank, and also represents the first equity acquisition undertaken by Rabobank in China.
Ms Ting Ting Tan, the Beijing-based Finance partner who led the Clifford Chance team advising on the deal, commented:
“The rural banking sector in China is a fast-growing sector, and this landmark cooperation between Rabobank, International Finance Corporation and United Rural Cooperative Bank of Hangzhou will have a significant impact on the reformation of China’s rural credit co-operatives. We are delighted to have been able to assist on this transaction.”
Rabobank will hold a 10% stake in URCB and IFC will hold the remaining 5% stake. Rabobank and IFC will provide technical assistance programs to assist the URCB develop into a modern and sophisticated financial institution. Specialist assistance will be provided in a range of areas including strengthening the administration and management, business development, distribution policy, marketing, credit control, risk management and IT systems development.
Clifford Chance’s Finance team also comprised associates/assistants Phuong Tri, Angela Chen and Katherine Ke (all Shanghai).
First foreign investment in a Chinese rural co-operative bank China…
