KB Financial and Carlyle form a strategic partnership to enhance global and domestic investment activities
Carlyle also agrees to invest KRW 240 billion into KB Financial through an exchangeable bond
Seoul, South Korea – KB Financial Group and global investment firm The Carlyle Group (NASDAQ: CG) today announced the signing of a memorandum of understanding (MOU) for a strategic alliance between KB Financial Group (“KB Financial”) and Carlyle Asia Partners V (“Carlyle”), the most recent Asia buyout fund for The Carlyle Group.
Through this strategic alliance, KB Financial and Carlyle will draw on the respective strengths of their domestic and global networks to collaborate on new investment opportunities both in Korea and overseas. Furthermore, KB Financial will work with Carlyle on the structuring and financing of Carlyle’s investments in Korea.
Following approval from the Board, KB Financial also signed an investment agreement with Carlyle, whereby Carlyle will invest KRW 240 billion (approximately USD 200 million) into KB Financial through an exchangeable bond utilizing KB Financial’s treasury shares.
Yoon Jong-gyu, Chairman of KB Financial, commented: “This strategic alliance will enable KB Financial to accelerate its global growth through close cooperation with Carlyle in discovering new investment opportunities, both in Korea and abroad. Equally, we believe that the strength of our domestic network will help Carlyle as it seeks to invest more into the Korean market.”
John Kim, Managing Director of the Carlyle Asia Partners advisory team, commented: “KB Financial’s leading position in Korea was a key factor in signing today’s MOU, as was the group’s stable growth, strength of management, and deep credibility. The group has also demonstrated excellent risk management capabilities in the face of the economic downturn resulting from COVID-19. We look forward to starting this close partnership as we seek to build Carlyle’s presence in Korea.”
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About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $217 billion of assets under management as of March 31, 2020, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,775 people in 32 offices across six continents.
Carlyle Asia Partners V (CAP V) is Carlyle’s most recent Asia buyout fund, closing at US$6.55bn in 2018. The fund focuses on buyout and strategic investments across a wide range of sectors in Asia Pacific. As one of the largest private equity investors in Asia Pacific, Carlyle has invested more than US$21.5 billion of equity in the region in more than 235 investments, as of March 31, 2020.
Further information is available at www.carlyle.com. Follow The Carlyle Group on Twitter @OneCarlyle.
About KB Financial Group
KBFG is Korea’s leading financial group offering broad range of financial products and services. KBFG’s 12 subsidiaries include Kookmin Bank, the largest commercial bank in Korea, and together provide clients with a comprehensive suite of financial services ranging from commercial banking, credit card services, asset management, non-life and life insurance and other services. KBFG will remain true to its mission of “Financial services Delivering Changes – Happier Life & Better World” in order to maximize customer value as their lifelong financial partner.
More detailed information can be found at www.kbfg.com
Phone: +852 2878 5239
Phone: +82 2 6951 3547
KB Financial Group
Jin Young Park
Phone: +82 2 2073 0632