The Industrial and Commercial Bank of China has agreed to provide project financing and related services through its Singapore branch to support investments in the “One Belt One Road” initiative.
The bank is also considering establishing an infrastructure fund to invest in projects across Asia.
The announcement came as International Enterprise Singapore, a Singaporean government agency, sealed its third partnership with Chinese banks in a bid to capture further OBOR infrastructure opportunities. The agency formed a tie-up with China Construction Bank last month after teaming up with Bank of China last November.
With the latest partnership with ICBC, IE Singapore expects to bring more than S$90 billion ($66.2 billion; €58.8 billion) worth of financing for OBOR projects, it said in a statement.
ICBC will set up a team in Singapore to provide project financing and related services, increasing efficiency and shortening turnaround time on the processing of loans.
“ICBC is a vital partner to work with as it has the clearing capacity of Renminbi and sound knowledge of Chinese companies. Through the strategic partnership, IE Singapore and ICBC can leverage on each other's global networks to meet the market opportunities,” said Chua Taik Him, deputy chief executive of IE Singapore.
“With the strong demand for infrastructure along the OBOR, we look forwards to extending our partnership with IE to cover the infrastructure sector. Our joint efforts will enable greater private sector participation in building the region's infrastructure,” added Jiang Jianqing, former chairman and executive director of ICBC Group.
The bank will also participate in IE Singapore's Infrastructure Development Internship programme to develop future talents in infrastructure while the two parties work together on infrastructure-related events.