Toronto, Canada and Beijing, China (December 8, 2015): Canada Pension Plan Investment Board (“CPPIB”) announced today that it has invested RMB 3.2 billion (approximately US$500 million) in the common equity of Postal Savings Bank of China (“PSBC”).
PSBC is one of the largest retail banks in China. With more than 400 million retail customers and nearly 40,000 branches, PSBC is China’s largest bank by customers and distribution network and is the sixth largest bank by total assets in China.
“We welcome the opportunity to invest in Postal Savings Bank of China as it is a business that is well suited to CPPIB’s long-term investment horizon,” said Mark Wiseman, President & CEO, CPPIB. “China is an important market for a long-term investor like CPPIB and we view this investment as a great opportunity to work alongside a highly respected financial institution to participate in the future growth and rising consumption patterns of the Chinese population.”
Other strategic investors, including leading global banks and leading Chinese internet companies, are investing alongside CPPIB and together are well placed to support the growth of PSBC’s business over the long term.
“This investment is well aligned with CPPIB’s focus on providing strategic, long-term capital to industry leading companies, through our Relationship Investments group, where we can participate in, and contribute to, the company’s future success, ” added Mr. Wiseman.
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City and São Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At September 30, 2015, the CPP Fund totalled $272.9 billion. For more information about CPPIB, please visit www.cppib.com.