China-Africa: Standard Bank of South Africa, ICBC Upgrade Cooperation
The Industrial and Commercial Bank of China (ICBC, SHSE: 601398 and SEHK: 1398) and Standard Bank of South Africa are upgrading their strategic cooperation.
Standard Bank of South Africa, in which ICBC holds a 20 percent stake, is about to set up a representative office and a consulting firm in Beijing before the end of 2008,. It has established a representative office and an investment consulting firm in Shanghai several years ago. The consulting firm provides consulting services in bulk commodity, precious metals and carbon emission trading.
The Beijing representative office will consist of over 20 professionals. They will be divided into seven teams, and each will specialize in investment operation, merger & acquisition, project financing, source banking, cash management and global market, and custody and trade finance, said a top executive from Standard Bank of South Africa.
Some of them will work in the same office building as ICBC to take charge of the strategic cooperation.
The upcoming representative office is contacting over 80 Chinese companies that have expressed interest in doing business in Africa. All of the potential clients are recommended by ICBC, the nation’s largest commercial lender by assets. Its local operations in 17 African countries have set up special units to serve Chinese clients.
All of the preparations progress well at present, added the top executive.
The Beijing consulting service firm will principally provide consulting services related to overseas merger & acquisition, financing and other financial activities for ICBC and its clients, Chinese companies that show interest in doing business in Africa and even other Chinese banks. So far the Import and Export Bank of China, China Development Bank and China CITIC Bank (SHSE: 601998) have extended presence into the African market.
The executive expects that the cooperation with ICBC in the year from July 1 can bring USD 50 million additional incomes. It is anticipated that about 10 percent of Standard Bank of South Africa’s global incomes would be derived from the cooperation.
Being the largest bank in South Africa, it is willing to partner with other banks such as Bank of China, Import & Export Bank of China and Agricultural Bank of China and will continue to cooperate with China Development Bank.The executive does not rule out the possibility to apply for a banking license in China.
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(tradingmarkets)