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GE to float Czech unit

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GE to float Czech unit

said April 11that it intends to apply for admission of all its ordinary shares to trading onthe Prague Stock Exchange.

Underthe planned IPO, to be carried out in line with General Electric Co.'s strategy to most of its financial units andfocus on core activities, the lender's sole shareholder, GE CapitalInternational Holdings Ltd., will offer a majority of its stake in the bank toinstitutional investors. No new shares will be issued as part of the offering.

Followingthe IPO, GE Capitalwill keep a significant minority stake in the bank for at least six monthsunder lockup arrangements, but the size of the holding "will reduce overtime and GE Capital and the company have arrangements in place to assist with asmooth transition to full independence from GE." GE MoneyBank will be rebranded as part of the process.

Theoffering will comprise private placements in certain non-U.S. jurisdictions inaccordance with applicable securities laws and in reliance on Regulation S inthe U.S. Securities Act of 1933, as amended; an offering within the CzechRepublic and other European Economic Area member states to qualified investors;and an offering with the U.S. to qualified institutional buyers.

Citigroup,Goldman Sachs International and J.P. Morgan will act as joint globalcoordinators and joint book runners in the offering, while Wood & Co wasselected as joint lead manager and listing agent.

GEMoney Bank said its targets include high-single-digit loan book growth in themedium term and an adjusted return on tangible equity above 14%, based on atarget CET1 ratio of 15.5%. It also intends a dividend policy that provides fora minimum annual dividend payment of 70% of consolidated after-tax profit.

Asof Dec. 31, 2015, GE Money Bank's CET1 ratio stood at 17.7%, before a dividendof 4.5 billion Czech koruny to be paid to GE prior to the offering. Itsfull-year 2015 ROTE was 16.5%.

As of April 11, US$1 wasequivalent to 23.68 Czech koruny.