Australia and New Zealand Banking Group, which owns the ANZ and National bank brands in New Zealand, says it will invest a further A$126 million in China-based Bank of Tianjin.
ANZ owns 20% of the Chinese bank and the additional investment represents it share of its planned 4.2 billion renminbi (A$629million) capital raising to support growth.
ANZ says the RMB5.20 per share issue price represents 1.9 times the December 31, 2009 book value and values Bank of Tianjin at about A$2.3 billion.
Last month, ANZ contributed A$250 million to a capital raising by Shanghai Rural Commercial Bank.
The investment "demonstrates the depth of our commitment to China and our strategic partnerships," says Alex Thursby, ANZ's Asia Pacific, Europe and America chief executive.
Bank of Tianjin operates in the Bohai Economic Region, the economic powerhouse of North China, lending to the retail and small-to-medium sized business sectors, Thursby says.
ANZ bought its stake in Bank of Tianjin in mid-2006 for A$159 million and is its second biggest shareholder after the Tianjin government.
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