5 June, 2017
Deutsche Bank has signed a $3 billion cooperation agreement with China Development Bank (CDB) to support infrastructure projects under China's 'belt and road' initiative.
Belt and road, also known as 'one belt one road', is a Chinese government development strategy. It focuses on land and sea based connectivity from China to major markets in Europe, Asia and the Middle East.
Deutsche Bank and CDB will establish a joint team to cooperate on projects promoting the initiative and will finance projects that are beneficial to their clients including through joint lending and project finance, Deutsche Bank said.
Garth Ritchie, head of Deutsche Bank’s Corporate and Investment Bank said: "Expanding infrastructure links between China and Europe is a positive opportunity for the people and economies of both."
The belt and road policy was first outlined in 2013 by Chinese president Xi Jinping during a state visit to Kazakhstan, and work began on the first related projects in 2015. The belt and road policy is managed by China's National Development and Reform Commission, the Ministry of Foreign Affairs and the Ministry of Commerce, and overseen by the State Council.
The belt describes land based routes, with several 'transport corridors' identified to reach markets in 64 countries, while the road refers to a maritime route through the South China Sea, South Pacific Ocean and Indian Ocean.
China plans to work with countries along each of these transport routes to lend money for projects, with a focus on energy and transport infrastructure.
For further information, please contact:
Ian Laing, Partner, Pinsent Masons
ian.laing@pinsentmasons.com
