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18 March 2008
Standard Bank and Industrial and Commercial Bank of China (ICBC) signed an agreement on 18 March 2008 to launch a USD1-billion global resources fund.
The fund would focus on opportunities in Africa and China, especially in specific fields such as preliminary mining, energy and resources.
Under their cooperation, both parties will forge a long-term strategic partnership to commence extensive business cooperation in China, Africa and other regions around the world.
The launching of the cooperation marked the entry into the implementation stage of the strategic cooperation between ICBC and Standard Bank.
Standard Bank and ICBC will together start in-depth cooperation on various aspects, including trade financing, international settlement, investment funds, commodities, global markets, and investment banking, with a view to continually expanding the areas of cooperation striving to create win-win situations that bring mutual benefits.
The establishment of the resource fund is for investing in entities or projects which are focused on natural resources, such as metals, petroleum, and natural gas.
ICBC's Chairman, Jiang Jianqing, said at the 18 March launch: "Today marks the beginning of our long-term strategic partnership with Standard Bank. Our equity stake in Standard Bank will align the interest of ICBC and Standard Bank's shareholders, providing great incentive for both parties to ensure the success of our partnership.
"The cooperation between our two banks - the largest bank in China and the largest bank in Africa - will not only create greater value for our shareholders, but will help further future developments in China-Africa trade relations."
ICBC's President Yang Kaisheng said: "As a candidate nominated by ICBC to serve as a director and the vice Chairman of Standard Bank, and as the Co-chairman of the Strategic Cooperation Committee, I have high hopes for the business cooperation between ICBC and Standard Bank. Now, it's time for both parties to work hard together, and through our actions, make our cooperation plans a reality."
Regarding the business cooperation with ICBC, Standard Bank's CEO Jacko Maree said: "Standard Bank and ICBC share the same vision for the long-term investment proposition for Africa, and Standard Bank is very well-positioned to serve as a gateway to the growing trade and investment flows between China and Africa. The two companies also have much to benefit from via partnership in several other countries".
To ensure the success of the partnership between the two companies, ICBC and Standard Bank have established a strategic cooperation committee co-chaired by ICBC's President Yang Kaisheng and Standard Bank's Chief Executive Jacko Maree aimed at strengthening the organization, leadership, and coordination of the strategic cooperation.
ICBC and Standard Bank have named the personnel to be in charge of each of the six major areas, namely the global resources fund, resource banking, investment banking, corporate banking, international business and global markets, and have established a number of joint working teams where needed to enhance cooperation on specific projects.
A strategic cooperation office has also been set up between the Strategic Cooperation Committee and the working teams to facilitate coordination and communication matters, to monitor the progress of various cooperation projects on a regular basis, and to report to the Strategic Cooperation Committee. Both parties will also second staff members to their counterpart's organizations to bring about on-site participation and to foster cooperation.
The launching of the strategic cooperation between ICBC and Standard Bank is the realization of what both parties have aimed to achieve from the 20% acquisition. Leveraging each other's complementary strengths, the two companies intend to cooperate extensively across a number of businesses and a broad spectrum of areas in a multitude of ways, through which they can provide better and more comprehensive services to their customers, maximizing synergies and value creation for all parties.
ICBC acquired a 20% stake in Standard Bank on 3 March 2008.
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