THE Industrial and Commercial Bank of China, the world's largest lender by market value, said yesterday it plans to buy 20 percent of Bank SinoPac in the first mainland investment in Taiwan's banking sector.

In a statement on its website, ICBC said it has a deal with SinoPac Holdings for its banking unit. The deal is still subject to regulatory approval in the mainland and Taiwan.

The stake acquisition will be worth NT$18.7 billion (US$625 million) based on the calculation of the net asset value at the end of June last year, ICBC said.

After winning regulatory approval, the price of the deal will be adjusted to reflect the actual condition of the targeted assets, ICBC said.

The news came a day after Taiwan's financial regulator said it will ease rules to allow banks from the mainland to buy a maximum 20 percent stake in Taiwan banks.