Date
24 September 2017
PrimeCredit, which offers personal loan and mortgage services, can help BEA boost its asset and client base in Hong Kong. Photo: Youtube
PrimeCredit, which offers personal loan and mortgage services, can help BEA boost its asset and client base in Hong Kong. Photo: Youtube

BEA to acquire PrimeCredit loan portfolio

Bank of East Asia Ltd. (00023.HK, BEA) is planning to acquire HK$5.9 billion worth of loan portfolio of Hong Kong-based PrimeCredit Ltd. and the mainland’s Shenzhen PrimeCredit Ltd.

The deal will be completed through a stake purchase from China Travel Financial Holdings Co. Ltd. and a subsidiary company of Pepper Australia Pty Ltd., the Hong Kong Economic Journal reported.

The PrimeCredit portfolio was unloaded by Standard Chartered Bank (Hong Kong) Ltd. to a consortium led by China Travel Financial.

The consortium includes York Capital Management Global Advisors LLC, according to a StanChart release. 

Analysts believe the deal will not have much impact on the share prices of BEA and Standard Chartered Plc. (02888.HK).

David Li, chairman of BEA, said the new loan portfolio can help the bank in expanding its local assets and client base. 

PrimeCredit is a deposit-taking company incorporated in Hong Kong. Standard Chartered brought it in 2004 for HK$980 million.

It is principally engaged in the provision of mortgages, personal loans, credit cards and third-party insurance.

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VW/JP/RC

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