(Yicai) Oct. 17 -- French consumer finance and mobility provider Crédit Agricole Personal Finance and Mobility will purchase a 50 percent stake in the leasing unit of Chinese carmaker Guangzhou Automobile Group for CNY2.1 billion (USD299 million) through a capital increase.

GAC Leasing’s registered capital will rise to CNY3.4 billion after the injection, the Guangzhou-based parent company announced on its official WeChat account yesterday. GAC Leasing, its parent firm GAC business and CAPFM signed the agreement on Oct. 15. 

With the deal, GAC Leasing will use the raised funds to finance its expansion and gained access to CAPFM’s mature risk management experience and information technology capabilities to improve its risk management system, accelerate its digitalization process, enhance its core competitiveness, and promote its business expansion, GAC noted.

Founded in 2004, GAC Leasing provides financial leasing services to individual and institutional vehicle users. It has established partnerships with several brands and joint ventures under GAC, including Trumpchi, GAC Aion, GAC Honda Automobile, and GAC Toyota Motor.

CAPFM is a wholly-owned subsidiary of French banking group Crédit Agricole Group that specializes in financial services for personal consumer credit. It serves 17.2 million clients across 22 countries and regions. It possesses extensive operational experience and excellent risk management capabilities in the automotive finance sector.

In February, GAC and Crédit Agricole signed a strategic cooperation agreement in Paris to explore collaboration in areas such as internationalization.

Editor: Futura Costaglione