Geely has said it plans to set up a joint venture with BNP Paribas Personal Finance to conduct auto financing in China.

BNP Paribas Personal Finance is a wholly owned subsidiary of France's BNP Paribas Group.

Geeely said the joint venture will have a registered capital of 900 million yuan (around $148 million), of which Geely will invest 720 million yuan giving it 80% of the company.

BNP Paribas Personal Finance will provide 180 million yuan for the remaining stake, a statement added.

"China's automotive market continues to grow at a rapid pace and customers are increasingly looking for new, innovative ways to finance their auto purchases," said Daniel Li, vice president and chief financial officer of Zhejiang Geely Holding Group and executive director of Geely Automobile.

The agreement is subject to approval by Chinese authorities.

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Geely Automobile Holdings Limited and BNP Paribas Personal Finance Signed Joint Venture to Establish Auto Financing Business

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GeelyBNP Paribas Personal Finance

Hong Kong/Paris, December 16th , 2013 – Geely Automobile Holdings Limited (“Geely Automobile”) and BNP Paribas Personal Finance announced today that they have entered into an agreement to establish a joint venture company to engage in auto financing in the People’s Republic of China.

The registered capital of the joint venture company will be RMB 900 million, of which RMB 720 million will be provided by Geely Automobile in consideration of an 80% stake in the company. BNP Paribas Personal Finance will provide RMB 180 million and hold the remaining stake. The signed contract will be submitted to relevant authorities, including the China Banking Regulatory Commission, for review and approval.

The joint venture company will provide auto financing products and services in the PRC, including wholesale financing solutions to auto dealers to finance the purchase of cars and operating facilities, as well as retail financing to end-customers.

“We are excited to be partnering with BNP Paribas Personal Finance to establish this auto financing company,” said Daniel Li, Vice President and CFO of Zhejiang Geely Holding Group and Executive Director of Geely Automobile. “China’s automotive market continues to grow at a rapid pace and customers are increasingly looking for new, innovative ways to finance their auto purchases. We are thrilled to be able to offer safe, professional and convenient auto financing solutions to our customers. These financing solutions will also enable us to help our distributors improve their operating efficiency and maximise their revenue potential. Combining Geely Automobile’s access to customers and distributors with BNP Paribas Personal Finance’s experience and expertise will help stimulate further sales growth and cater to the evolving needs of customers, creating a winning partnership.”

Thierry Laborde, CEO of BNP Paribas Personal Finance said, “BNP Paribas Personal Finance is present in around 20 countries and regions, offering a full range of personal financing services. For BNP Paribas Personal Finance, participation in China’s auto financing sector represents a big step in our commitment to the financial market in China. We are impressed with Geely Automobile’s strong position in the automotive industry and its global vision. We look forward to working together with Geely Automobile to bring auto financing services to Chinese customers.”

Eric Raynaud, Chief Executive Officer of BNP Paribas Asia Pacific highlighted: “This partnership is another key milestone of the Group’s development plan in Asia Pacific and in China in particular following our announcement in July 2013 to enter a 50:50 equity joint venture with Bank of Beijing in the insurance sector. China represents a key market for us where we already provide clients with services in corporate and investment banking and wealth management activities through our 100% subsidiary BNP Paribas China Ltd. We have also been enjoying since 2005, a successful partnership with Bank of Nanjing in retail and commercial banking, and with Haitong Securities since 2003 through HFT Investment Management in asset management.”

Original source: http://www.bnpparibas.co.th/en/2013/12/17/geely-automobile-holdings-limited-bnp-paribas-personal-finance-signed-joint-venture-establish-auto-financing-business/