Bangkok--26 Dec--KASIKORNBANK
Proactively pursuing more robust Thai-Chinese financial relations, KASIKORNBANK (KBank) has signed a business and financial pact with China Development Bank (CDB) to strengthen the business potential of KBank in China, as well as accommodate lending to large projects here and elsewhere in South East Asia, thus improving financial standings and business opportunities for both banks.
KBank CEO Banthoon Lamsam has revealed that KBank has signed a Memorandum of Understanding with Mr. Li Jiping, CDB Executive Vice President, on business and financial cooperation. By means of this agreement, CDB will provide a reserve of RMB1.5 billion (THB7.5 billion) to KBank’s Shenzhen Branch, while an equivalent amount will be granted to CDB by KBank to support their business expansion into Thailand.
Other aspects of this business cooperation include syndicated loans for large infrastructural projects and related construction to be extended to investors in Thailand, plus the sharing of valuable data, research experience and business innovations, as well as employee skills enhancement and other training, all of which will enhance the financial strength of both parties and fortify this business alliance in the future.
CDB is one of China’s largest financial institutions, engaging in support for national development projects vis-?-vis energy, transportation and infrastructure, e.g., Shanghai-Pudong Airport, the South-to-North Water Diversion Project and Shanghai-Chengdu High Speed Rail.
Being the only China’s banks in the China-ASEAN Inter-Bank Association, CDB has entered into cooperative agreements with 10 commercial banks in 10 ASEAN states, including KBank, to enhance cooperation on financial matters and infrastructure development between China and ASEAN member countries. Currently, CDB has established branches in several countries, and extended foreign exchange loans within the Guangxi Zhuang Autonomous Region and in ASEAN, with a total value of USD32.6 million.
CDB views that trade and investment between Thai and Chinese investors will grow further. Hence, the synergy between the two banks should help support our financial needs via enhanced flexibility toward financing for mega-projects in the future. With healthy continuous growth in the Thai economic sector, cooperation should allow us to offer services that suit business and investment growth in Thailand. This effort will also lead to strengthened potential and more substantial investment liquidity to assist investors in Thailand and China, as well as an even closer relationship between us.
Mr. Banthoon added that this financial pact will help highlight cooperation within the private sector in line with cooperation between our two countries, as Mr. Xi Jinping, Vice President of the People's Republic of China is now on an official visit to Thailand for fortifying business links and for the signing of a government-level bilateral cooperation agreement.
KASIKORNBANK is one of Thailand’s top-ranked banks with 810 domestic branches, as well as 8 overseas branches/representative offices. We experienced 300-percent loan business growth in China in 2011. In addition, KBank is preparing to open our second and third branches in China, and will be seeking to register our branch there as a locally incorporated institution within 2013.