ICBC expands presence in Singapore with key MoUs

ICBC expands presence in Singapore with key MoUs

Under an agreement between ICBC and IE Singapore, the Chinese bank will provide financing services and look at ways to support Singapore companies in infrastructure projects across Asia.

SINGAPORE: To help Singapore companies tap infrastructure opportunities in China's "One Belt, One Road” initiative, International Enterprise (IE) Singapore has signed a Memorandum of Understanding (MoU) with the Industrial and Commercial Bank of China (ICBC).

One Belt, One Road (OBOR) is an ambitious plan proposed by Chinese leader Xi Jinping to build land, sea and air routes reaching across the continent and beyond, with the aim of boosting China’s trade and carving out new export markets between Asia and Europe.

Under the agreement, signed at the 2nd RMB Internationalisation Summit on Tuesday (Jun 7), ICBC will provide financing services and look at project structuring to support Singapore companies in OBOR infrastructure projects across Asia.

ICBC will also set up a team in Singapore to provide project financing and related professional services required in OBOR infrastructure investments.

Mr Chua Taik Him, Deputy CEO of IE Singapore, said: "China's 'One Belt, One Road' initiative has opened up investment opportunities in infrastructure projects for Singapore companies. Through this strategic partnership, IE Singapore and ICBC can leverage on each other's global networks to meet the market opportunities."

With this MoU, IE Singapore’s partnerships with Chinese banks bring more than S$90 billion worth of financing for OBOR projects to the table. The agency signed an MoU with China Construction Bank in April and Bank of China last November.

As part of the event, ICBC also announced it will set up its Asia-Pacific Shipping Finance Centre in Singapore. The Finance Centre will allow ICBC to securitise its shipping loans by tapping the Singapore bond market, among other activities.

The bank also signed MoUs with shipping firms including Pacific International Lines China and Berhard Schulte, as part of the launch of the Shipping Finance Centre.

Source: CNA/cy