Goldman makes $2bn in ICBC sale

Hong Kong - Goldman Sachs has raised more than $1.9bn after selling part of its stake in Industrial & Commercial Bank of China as the US investment firm seeks to repay government bailout funds.

Goldman unloaded more than 3.3 billion Hong Kong shares in ICBC, China's biggest lender, at HK$4.88 Hong Kong dollars each, according to a sales sheet reviewed on Tuesday by The Associated Press.

That represents about 3.7% of the Chinese bank's Hong Kong-listed shares and 0.9% of its total outstanding shares.

It's also about a fifth of Goldman's some 4.9% holding in ICBC. The remaining 80% of its stake is locked up until at least April 2010 under an agreement between Goldman and ICBC earlier this year.

The Wall Street firm was among the first financial institutions to receive money from the US Treasury Department late last year under a government stock purchase programme designed to help banks survive the credit crisis and improve lending.

But banks have chafed against rules on the bailout money, including limits on executive compensation. Goldman, like other bailout recipients, has applied to repay the money. Goldman's portion amounted to $10bn.

A Goldman spokesperson in Hong Kong declined to comment.

ICBC shares have surged in recent months but closed down 4.1% at HK$4.9 in Hong Kong on Tuesday.

- AP