Temasek, Hopu, China Fund Buy Bank of America's CCB Stake

Published in

Bank of America Corp., seeking to bolster its financial standing in the face of new government requirements, raised $7.3 billion from Asian investors Tuesday through the sale of a roughly 5.7% stake in China Construction Bank Corp., according to people familiar with the matter, The Wall Street Journal reported. For the U.S. lender, the move marks a significant step to raising $34 billion in capital needed to meet the requirements of a new U.S. government stress test for lenders. It also marks the latest turn by a Western financial firm toward deep-pocketed Asian investors, who have become key sources of funding during the global financial crisis and appear keen to invest in the region's financial industry. On Tuesday, the Charlotte, North Carolina, bank sold 13.5 billion shares, or one-third of its 16.7% stake, in China Construction Bank for 4.20 Hong Kong dollars a share, according to there people familiar with the situation. China Life Insurance (Group) Co., Singaporean sovereign wealth fund Temasek Holdings Pte. Ltd., and private equity fund Hopu Investment Management Co. joined hands to buy the block of shares. The amount each investor took couldn't be determined, but one person involved said China Life purchased the largest portion. Read more. (Subscription required.)