Huarong Attracts Goldman Sachs and Khazanah Nasional

China Huarong Asset Management Co. is finalizing on a deal to sell an approximate a 20% stake to a group of investors which include Goldman Sachs and Malaysia’s Khazanah Nasional for US$ 2 billion. Huarong, one of China’s four asset management firms created in 1999, is looking forward to a future initial public offering and is locking up some long-term institutional investors. China’s Cinda Asset Management, another one of China’s impaired loan buying firms, raised US$ 2.8 billion in December 2013 from investors like Norges Bank Investment Management and New York-based Och-Ziff Capital Management Group LLC. Citigroup is the advisor for the deal.

Only July 10, Huarong raised US$ 1.5 billion in a bond offering. The U.S. dollar bonds were 850% oversubscribed and offered in line with Reg-S rules.

Currently, Huarong is 98.06% owned by China’s Ministry of Finance and 1.94% owned by China Life Insurance Group Co. China’s Ministry of Finance has approved a new issue of shares to investors.

The investor group is made up of:

  • Goldman Sachs
  • Khazanah Nasional Berhad
  • Warburg Pincus LLC
  • Citic Private Equity
  • China International Capital Corporation
  • Fosun International Ltd.
  • COFCO Limited

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