|
BIZCHINA / Banking/Finance |
Commodities alliance for CDB(Shanghai Daily)
Updated: 2007-10-11 16:22 China Development Bank and Barclays yesterday said the two parties have formed a commodities strategic alliance in energy, metals and emissions. The tie-up can leverage China Development Bank's strong market presence in China and Barclays' global commodity capability, the two said in a statement yesterday. The Chinese policy bank will appoint Barclays as its preferred provider of commodity market risk hedging while the British financial player will help enhance its Chinese partner's commodities execution and risk management infrastructure. The initial term of the alliance is five years with the option to extend for a further period agreed by both parties. The alliance on the commodities market is the extension of the two players' links. In late July, China Development Bank said it will pay up to 9.8 billion euros ($13.55 billion) to buy a stake in Barclays, seeking overseas investment and expertise from a commercially operated lender. The Chinese policy bank also said it will pay 2.2 billion euros in August for a 3.1-percent stake in Barclays with a further 7.6 billion euros on conditions Barclays completes its bid for ABN Amro. The second investment seems unlikely now as Barclays withdrew from the bid earlier this month. A consortium led by Royal Bank of Scotland won the race. China Development Bank sees a long-term alliance with Barclays, and the withdrawal of the bid for ABN Amro will not cast a shadow on the two parties' cooperation, China Securities News reported on Tuesday, quoting an unnamed CDB official. The Beijing-based bank's mandate is to invest mainly in domestic infrastructure projects. |
|