French bank BNP Paribas plans to invest T$4 billion ($121 million) for a 10 percent stake in state-run Taiwan Co-operative Bank and will forge a strategic partnership, a source at the Taiwan bank said on Monday.
It would be the first tie-up between a Taiwan state bank and a foreign bank. Previously, only private Taiwan banks, Fubon Financial Holding Co Ltd and E. Sun Financial Holding Co, had partnerships with foreign investors. "We will bring BNP Paribas to be our strategic investor. It plans to invest T$4 billion," a Taiwan Co-operative Bank executive, who declined to be identified, said.
Taiwan Co-operative Bank said earlier this month it planned to raise at least T$5 billion via a rights issue next year to boost its capital adequacy ratio.
The issue will come after a merger between Taiwan Co-operative Bank and Farmers Bank of China is completed on May 1.
On Monday, shares of Taiwan Co-operative Bank ended down T$0.51 percent at T$19.5, compared with a 0.34 percent rise on the main TAIEX index.
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