Yinren Group acquires ADB from KBC

KBC has reached agreement with the China-based Yinren Group for the sale of its subsidiary Antwerp Diamond Bank (ADB). Financial details of the agreement, which is still subject to regulatory approval, are not being revealed. Meanwhile, ADB remains committed to continuing its business activities and serving its customers.

Under the deal, KBC would take on 400 million euros worth of high risk or bad loans on the diamond bank's books and also provide funding totalling 200 million euros to the bank for up to two years following the sale and pending regulatory approval and final closure of the deal - the Yinren Group will acquire 100 percent of KBC's participation in ADB, which represents 99.9 percent of ADB's shares. The deal will free up around 0.1 billion euros of capital for KBC.

The Antwerp bank provides financing to the diamond trade and has 75 years of experience in the industry.