BOC Aviation BOC split banks listed in Hong Kong-based spin-off or temporary tide

Updated: October 20, 2015  Views: 61

Beijing reported trainee reporter Rao Shouchun

With the confirmation of Bank of China (601988.SH/03988.HK intends to spin off its subsidiary BOC Aviation Private Limited ('BOC Aviation' message listed in Hong Kong, has long been rumored spin-off subsidiary of China's commercial banks wave or a separate listing will officially come.

October 18 evening, the Bank of China disclosed bulletin board resolution that will push BOC Aviation subsidiary listed in Hong Kong, the proposed financing does not exceed 40% of the total share capital, the Bank will continue to hold 60% stake, maintain absolute Holdings position. Notice disclosure, the proceeds would be used to buy BOC Aviation aircraft and supplement working capital, and the company after the listing will continue to maintain the word 'Silver.'

A source close to the Bank of China in the 21st Century Business Herald reporter said the financial leasing business in the country at the start, had only good as a cash flow of an alternative channel for commercial loans, but in the long run the business itself with independent development and growth potential funding sources securitization is optional rental business, 'while reducing the risk of the parent bank, the other non-related business expand more outside the parent company.'

Chanson capital Executive Director Shen Meng claimed that commercial banks separately listed subsidiary spin-off trend in the future will see more and more obvious, the subsidiary credit cards, leasing, investment banking and private line, etc. are likely to be split.

Ping An Securities [microblogging] also in the research report said: 'The recent listing of the Bank of China IPO subsidiaries and independent financial services subsidiary of the Industrial Bank, showing banks mixed, spin-off and its subsidiaries listed on the progressive into concrete the implementation stage. Although there are still many legal and regulatory framework regulators need to break through, but the long-term trend is irreversible. '

BOC Aviation will be listed in Hong Kong

As the world's second largest aviation leasing company BOC Aviation will usher in their own opportunities in the capital markets solo.

According to the announcement on the 18th night of Bank of China disclosed, BOC Aviation has been approved by the Board of Bank of China, the future will be listed on the Hong Kong Stock Exchange, as will seek shareholder approval and supervision, and therefore specific time to market has not been determined.

According to the announcement content, this IPO offering size will not exceed 40% of the total issued share capital, including not more than 20% of the new shares issued in the aviation leasing and Central BOC Aviation controlling shareholders to sell no more than 20% of the old shares, use of proceeds for the purchase of new aircraft, supplement working capital. Among them, the sale of 10% in the size of Hong Kong Public Offering, Offer 90% the size of the sale to international investors.

Bank of China said that after BOC Aviation listing, the company will continue to maintain absolute control, 'Bank' the words will be preserved. Bank of China, said the listing BOC Aviation will further promote enhance the company's leasing sector valuation, thus achieving mother enhance the company's overall valuation, and the listing will further stimulate the rapid development of aviation leasing, thus consolidating the Bank's core competitiveness, and promote its sustainable development.

According to public information display, BOC Aviation is headquartered in Singapore, formerly known as Singapore Aircraft Leasing Enterprise in November 1993 created in December 2006 by the Bank of China enterprise value $ 3.25 billion, a wholly owned acquisitions, in July 2007 the company officially changed its name of BOC Aviation. After years of development, BOC Aviation has become one of the world's largest aircraft leasing companies. As of September 30, BOC Aviation owns and management of aircraft total 253, serving the world 29 59 national airlines, and there are 203 single real aircraft, while in 2014, BOC Aviation's net profit after tax of $ 309 million, an increase of 11% as of end of last year and achieved a net $ 11.4 billion of assets.

21st Century Business Herald reporter learned that, to remove the above Bank of China, in recent years, a number of domestic commercial banks are involved in the financial leasing market, in addition to the aforementioned Bank of China, China Development Bank's control have National Bank Financial Leasing Co., Ltd., and passed some time ago The company is working with the China Development Bank's securities brokerage country open joint-stock reform, the fastest will be the end listed in Hong Kong Industrial and Commercial Bank of China (601398.SH/01398.HK, Bank of Communications (601328.SH/03328.HK also has own financial leasing companies, banks owned by financial leasing companies accounted for the mainland market share of more than two percent leased.

Banking subsidiary spin-off

Market surges or coming

Although not the first banking subsidiary is spun off, nor is it the first aircraft leasing companies in the Hong Kong Stock Exchange, but also have the characteristics of both BOC Aviation, its future heralded listing banking subsidiary spin-off or a separate listing of the tide coming in succession.

September 24, Industrial Bank (601166.SH announcement that the board agreed to invest in the establishment of digital financial information service Industrial Co., Ltd. (tentative name, the registered capital of 500 million yuan, place of registration for the China (Shanghai Lujiazui Free Trade Experimental Area Financial Area. The company intends by the wholly owned subsidiary of the Industrial Bank Holding Fund Management Limited, a subsidiary of Societe Generale Societe Generale Wealth Asset Management Ltd. holds 51% Industrial Digital Services Limited ESOP financial information platform (partnership form of business support shares 19%, Infotech Software Co., Ltd., Shenzhen gold card Technology Co., Ltd. and Fujian Newland cloud providers equity (limited partnership were holding 10%.

As soon as he released the message, which some analysts believe this indicates that the banking subsidiary of the spin-off has taken a substantial step forward. In this regard, Ping An Securities banking analyst Li Yamin also said in its research report, the Industrial Bank the establishment of an independent financial services subsidiary of Silver Silver, indicating that the banking sector in a mixed business, spin-off and its subsidiaries listed in the progressive phase into concrete implementation, 'Although there are still many legal and regulatory framework regulators need to break through, but the long-term trend has been irreversible. '

BOC Aviation intends to market news and more confirmation of the above long-term trends banking subsidiary spin-off of a separate listing. A source close to the Bank of China in the 21st Century Business Herald reporter said that China's banking leasing business started late, first only as an alternative channel for better cash flow of commercial loans, especially for the airline's aircraft leasing business, both commercial banks that provide such a large aircraft purchase business loans, you can solve the purchase of cash flow abundant Airlines Aircraft-time capital expenditures excessive debt problems.

'But in the long term, the financial leasing business itself has the potential to grow and develop independence.' The source said, 'In addition to commercial loans, such as securitization and other funding sources are also optional rental business, so the banking system leasing companies in transition over the business after the initial stabilization period, you can gradually spin independently, while reducing the risk of the parent bank, the other non-related business expand more outside the parent company. '

Chanson capital Executive Director Shen Meng also agree with this view, he noted that the risk of different types of business banking, business models are not the same, originally considered a one-stop financial supermarket model can meet all the needs of consumers, but 2008 subprime crisis triggered by the global financial crisis has shown, integrated financial if too concentrated, complex and existing mechanisms will not be successfully implemented, 'at the same time, also contribute to the free development of independent spin-off subsidiaries, to get a better chance.'

Shen Meng predicted that credit card banking subsidiary will begin spin, gradually pushing and leasing subsidiaries, does not preclude future spin-off of investment banking, private line services, 'Anyway, from then listed subsidiary spin-off trend alone It is possible. '


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