China Construction Bank, the world’s second-largest bank, has teamed up with Singaporean government agency International Enterprise Singapore to help catalyse investments in infrastructure projects under the One Belt One Road (OBOR) initiative.
CCB has committed S$30 billion ($22.3 billion; €19.6 billion) to support the scheme. It plans to set up a centre in Singapore to provide project financing and related professional services required in OBOR basic infrastructure investments, which will be the first of its kind for CCB outside China, according to a statement.
Currently, CCB has a pipeline of 176 major projects in the OBOR countries, with an aggregate investment size of more than $300 billion spanning power generation, construction, mining, transportation and telecommunications sectors.
CCC and IE Singapore chaired discussions between a group of more than 30 Singapore and Chinese companies to explore various avenues for collaboration at a roundtable this week. Some of the participating Chinese companies include COSCO, China Railway 11 Bureau Group Corporation and China Telecom.
This partnership is the first signed by CCB with a South-East Asian country at a time when other Chinese and Singaporean institutions are striving to form tie-ups.
Last week, UOB Venture Management, the private equity arm of Singapore’s United Overseas Bank, sealed a partnership with three Chinese companies to launch a CNY100 billion ($15.4 billion; €13.6 billion) private equity fund, which will target investments in financial services, transportation and logistics sectors in Chongqing, China, sister publication Private Equity International reported.
The Chinese firms involved comprise state-owned Chongqing Yufu Asset Management Group, Ping An Insurance and Tus-Holdings, which operates and manages the Tsinghua University Science Park.