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BOA sinks US$3 billion in China Construction Bank

BOA sinks US$3 billion in China Construction Bank

(23 June 2005 – China) Bank of America has inked an agreement with China Construction Bank to take a nine percent stake for US$3 billion with an option to expand its interest in the bank later on. BOC chairman Kenneth D. Lewis said the investment had been made with the best positioned bank in China, one which had undergone an impressive transformation over the past few years.

"They have built a leading franchise in China and we see value in combining their local knowledge and distribution with our product expertise, technology and experience with size and scale," he said.

Lewis said BOA would help CCB develop its governance and risk management areas and its credit cards, consumer banking and treasury businesses.

CCB is the second largest commercial bank in China with US$472 billion in assets and US$422 billion in deposits. It has 136 active retail accounts and 14,500 branches.

CCB chairman Guo Shuqing said the deal was a "win-win partnership".

"The most fundamental and challenging task in transforming CCB is to establish a culture that is customer centric and market driven," he said.

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