Bank of China sells stake in power firm

Bank of China Ltd has agreed to sell a 20 percent stake in a power company, Huaneng International Power Development Corp, for 8.7 billion yuan ($1.3 billion) in its latest move to streamline assets that have more than doubled since 2008.

Pro-Power Investment Ltd, owned by China Huaneng Group, will pay cash for the stake in three installments within a year, the Beijing-based lender said in an exchange filing on Tuesday. Bank of China will use the proceeds for "any new investment" for sustainable growth, it said.

The price is "slightly lower" than the amount in a valuation, the lender said.