Central Huijin Investment Co, the domestic arm of China Investment Corp, will inject 88 billion yuan in the Export-Import Bank of China and China Export and Credit Insurance Corp (Sinosure), the Shanghai Securities News reported today, citing an unidentified person.
Central Huijin will gain this boost in capital by selling bonds. The company has gotten approval from the People's Bank of China, the central bank for a bond sale of 187.5 billion yuan in total and will sell up to 54 billion yuan ($8 billion) of bonds in China's inter-bank bond market Tuesday.
Huijin may use the rest of the funds to invest in rights offering plans of China's three largest banks, including Industrial and Commercial bank of China, China Construction Bank and Bank of China.
The three banks announced plans to raise as much as 180 billion yuan through rights offers this year. Huijin will invest about 100 billion yuan if it fully participates in the lenders' rights issues, according to the report.