Britain's Royal Bank of Scotland (RBS) is leading a group of investors which will pay just over $3 billion for a 10% stake in the Bank of China.
The state-owned Bank of China is the second largest of the country's big four banks. It has subsidiaries in 27 countries, and its Hong Kong arm has been partly floated.
RBS, which owns Ulster Bank and First Active, will have one seat on the Bank of China board. It will invest $1.6 billion in the deal, to be raised through the sale of its stake in Spain's SCH, which was also announced today.
The group has committed to retain its stake in Bank of China for three years. A statement said RBS had no plans to increase its investment.
As part of the deal, Bank of China and RBS will cooperate across a number of areas, including credit cards, wealth management, corporate banking and personal insurance.
