General Electric Capital Corp. (GE:US) plans to sell a majority stake in Swiss consumer finance bank GE Money Bank AG in an initial public offering in the fourth quarter.
The lender will be named Cembra Money Bank AG, with shares traded on the SIX Swiss Exchange in Zurich, GE Money Bank said today in a statement. GE Capital will keep a “significant” minority stake for one year and provide committed funding of as much as 1 billion Swiss francs ($1.1 billion) for five years.
“GEMB is a profitable, well-run business with a strong customer base,” GE Money Bank Chief Executive Officer Robert Oudmayer said in the statement. “As a listed company, we will have access to alternative and diversified sources of funding.”
The company follows Ledermann Immobilien AG, a Swiss real estate company, which said last month it plans to raise as much as 130 million Swiss francs in an IPO.
GE Money Bank had a consolidated net income of about 133 million francs in 2012 and plans to pay 60 percent to 70 percent of profit in dividends, according to the statement.
The bank declined to comment on how much GE Capital may raise through the sale. Credit Suisse Group AG is global coordinator as well as joint bookrunner. Bank of America Corp. and Deutsche Bank AG are also acting as joint bookrunners, while Bank Vontobel AG is lead manager.
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