New Development Bank and China Construction Bank Signed Memorandum on Strategic Cooperation
The New Development Bank (NDB) and China Construction Bank Corporation (CCB) today signed a Memorandum of Understanding on Strategic Cooperation. The Memorandum was signed in Shanghai by the NDB President K. V. Kamath and the CCB Chairman and Executive Director Wang Hongzhang.
“The NDB, as per its mandate, is building partnerships with major banks in its member countries. Cooperation with CCB is important for us, given the key role it plays in infrastructure financing,” said K. V. Kamath.
“The MoU signed today will provide our two institutions with a framework for collaboration in several areas including bond issuance, joint financing and information exchange. I look forward to a long and mutually beneficial partnership,” added Mr. Kamath.
He appreciated CCB’s support in providing professional underwriting services, adequate credit lines and its commitment to invest in NDB’s first Financial Green Bonds. Mr. Kamath expressed confidence that with CCB’s support, NDB should be in a good position to issue Green Bonds in the next few weeks.
Speaking at the occasion, Wang Hongzhang said, “The foundation of NDB is of strategic importance to the economic and financial cooperation between BRICS countries, other emerging economies and developing countries. NDB’s support will enable these countries to remove bottlenecks faced in financing infrastructure and sustainable development projects and provide a strong momentum to their economies.”
“Currently, there are a lot of investment opportunities in BRICS states, other developing and developed countries. The transformation and structural adjustment of emerging countries will give rise to unlimited opportunities. The One Belt One Road Initiative proposed by China’s State Government also requires significant amount of capital injection. As a commercial bank dedicated to serve infrastructure projects and large corporates, CCB tracks these opportunities closely and attaches great importance to financial interaction with other BRICS countries and emerging economies. Common business focus has made CCB and NDB the ideal match for each other. The signing of this MOU would definitely consolidate the strategic partnership between the two banks,” he added.
According to the Memorandum, both sides will harness their respective resource advantages and professional expertise, aiming to build a long-term, stable and mutually beneficial business relationship.
New Development Bank
The New Development Bank has been established with a vision to support and foster infrastructure and sustainable development in emerging economies. The NDB will complement the efforts of other existing financial institutions to realize the common goal of global growth.
The founding members of the NDB are Brazil, Russia, India, China and South Africa. It has an authorized equity capital of US$ 100 billion and its membership is open to all members of the United Nations.
The operational policies and procedures of the Bank are in place, having been approved by its Board of Directors. With the signing of the Headquarters Agreement with the Government of the People’s Republic of China and Memorandum of Understanding with Shanghai Municipal People’s Government in February 2016, the Bank became fully operational. In April 2016, the NDB’s Board of Directors approved the first set of loans involving financial assistance of USD 811 million. The Bank has received AAA institutional rating from China Chengxin Credit Rating Co and China Lianhe Credit Rating Co.
China Construction Bank
Established in 1954, China Construction Bank is a leading joint stock commercial bank in Mainland China with world-renowned reputation and a market leader in asset scale, profitability and other core business indicators. With nearly 15,000 branches and sub-branches in Mainland China, the bank provides services to over 3.9 million corporate clients and 340 million personal customers. In recent years, while actively supporting the state government’s strategies of Going Global and One Belt One Road, China Construction Bank has accelerated its internationalization, with 28 overseas tier-1 branches and 140 entities in 26 countries and regions, including branches in Johannesburg, Cape Town and subsidiaries in Brazil and Russia.