China & Germany Agree USD3 Billion Joint Bank Lending For OBOR Projects
Germany’s Deutsche Bank has signed an agreement with the China Development Bank http://www.cdb.com.cn/English/ (CDB) to co-finance US$3 billion worth of infrastructure projects within China’s One Belt, One Road initiative. A memorandum of understanding was signed in Berlin on May 31st, ahead of the EU-China Summit in Brussels. The two banks expressed their interest in promoting the internationalization of the RMB, and in financing economic cooperation between China, Germany and other OBOR countries.
As part of the MoU, CDB and Deutsche Bank agreed to work together over the next five years with an aim of supporting projects worth a total of US$3 billion. Both banks also agreed to establish a joint team in order to cooperate on projects that promote the Belt Road initiative. CDB and Deutsche Bank will finance projects that are beneficial to clients of both banks, including through joint lending and project finance.
“We are pleased to work with China Development Bank in support of the Belt and Road initiative”, commented Garth Ritchie, head of Deutsche Bank’s Corporate & Investment Bank. “Expanding infrastructure links between China and Europe is a positive opportunity for the people and economies of both.”
“We are confident that the depth of our network and experience in Europe will provide a critical anchor to this important China-led policy initiative”, added Werner Steinmuller, Deutsche Bank Asia-Pacific CEO.
Deutsche Bank is the largest bank in Germany, with total assets of 1.6 trillion euros as of its December 31 balance sheet date. China’s Development Bank has annual income of 1.3 billion Euros, and is the second-biggest bond issuer in China after the Ministry of Finance, accounting for about a quarter of the country’s yuan bonds, and is China’s biggest foreign-currency lender.
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