China Construction Bank Corporation (CCB) and International Enterprise (IE) Singapore signed a Memorandum of Understanding (MOU) on Monday, in which CCB will provide 30 billion Singapore dollars (22.2 billion U.S. dollars) of financing services to support enterprises on infrastructure projects under the Belt and Road Initiative.
Under the MOU, CCB will support Singapore and Chinese companies to invest in infrastructure projects under the Belt and Road Initiative through Singapore, which will enhance Singapore's position as an infrastructure hub in Southeast Asia.
The MOU will also see CCB exploring the set-up of a center in Singapore to provide project financing and related services required in basic infrastructure investments under the Belt and Road Initiative, which will be the first of its kind for CCB outside China.
CCB's Chairman Wang Hongzhang said that CCB is pleased to sign the MOU with IE Singapore, and CCB will do its part to support enterprises under the Belt and Road Initiative.
"With our strong foothold in infrastructure projects and loans, we are confident that our expertise will advance Singapore and Chinese companies in infrastructure projects under the Belt and Road Initiative," said Wang.
Chief Executive Officer of IE Singapore Lee Ark Boon noted that China's Belt and Road Initiative will improve connectivity and catalyze projects in physical and info-comm infrastructure.
"As the regional infrastructure hub, Singapore's know-how and networks with China and Southeast Asia gives Singapore-based companies a further advantage on projects under the Belt and Road Initiative. Our partnership with CCB is strategic, strengthening the critical financing element and bringing more projects to fruition," Lee said.
CCB also signed a MOU with Singapore Exchange (SGX) on the development of the capital market in Singapore at the same event on Monday.
CCB will work with SGX to encourage more Chinese companies to list in Singapore (including through REITs), issue bonds, undertake mergers and acquisitions, establish cross-border fund management services and other capital market financial services.
"We are pleased to partner CCB to highlight the opportunities our fund-raising platforms can offer to Chinese companies, including access to a global investor base. We also look forward to further collaboration with CCB in derivatives clearing and settlement," said Loh Boon Chye, CEO of SGX.
The MOU signing ceremony was witnessed by Singapore's Minister in Prime Minister's Office Chan Chun Sing, Lee Ark Boon, Loh Boon Chye from the Singapore side, as well as Zheng Chao, minister counsellor at the Economic and Commercial Office of the Chinese Embassy in Singapore, and Wang Hongzhang.
IE Singapore and CCB also co-organized a forum on infrastructure and capital market financial services under the Belt and Road Initiative.
