General Electric Capital Corp would be selling the majority stake it holds in GE Money Bank through an initial public offering. The IPO would be scheduled in the fourth quarter. In a statement, GE Money Bank said GE Capital would still keep a significant minority stake in the lender for a period of one year. GE Capital would also continue to provide funding of CHF 1 billion or USD 1.1 billion for up to five years.
GE Money Bank Chief Executive Officer Robert Oudmayer said, "GEMB is a profitable, well-run business with a strong customer base. As a listed company, we will have access to alternative and diversified sources of funding." The lender would have its shares traded on the SIX Swiss Exchange in Zurich under the name Cembra Money Bank Ag.
GE Money Bank did not speculate on the amount that GE Capital would be able to get through the IPO. Bank of America Corp and Deutsche Bank would act as the joint bookrunners of the IPO. Credit Suisse Group would also be a bookrunner and would act as the global coordinator for the sale.
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