ICO and Bank of China sign an agreement to formalise the collaboration framework between the two entities
The agreement opens up the possibility of financing, co-financing or guaranteeing investment plans and common interests, mainly large infrastructure projects, and of facilitating the financing of Spanish companies in China.
Today, the Instituto de Crédito Oficial (ICO) and the Bank of China signed a Memorandum of Understanding (MoU) to collaborate on joint financing initiatives. The Chairman of Bank of China, Chen Siqing and ICO Chairman Jose Carlos Garcia de Quevedo signed a document establishing the principles that will govern cooperation between the two bodies in the future, based on the principles of equality, mutual benefit, respect and trust, in accordance with established international banking practices and all applicable laws and regulations.
This agreement formalises the non-exclusive collaboration framework between the two entities for promoting and supporting investment programmes and projects that are of a shared interest. Thus, it opens to the door to financing, co-financing and guaranteeing investment projects of a shared interest, mainly infrastructure projects. Furthermore, the two entities agree to cooperate to provide financial and non-financial services to Chinese and Spanish small and medium enterprises with the aim of facilitating Spanish companies' investment projects in China.
Moreover, Bank of China agrees to offer long-term financing in local currency to ICO, and ICO may designate Bank of China as a Main Insurer and Bookrunner to facilitate ICO's financing activities in China's interbank bond market. ICO is currently exploring the possibility of issuing bonds in China in RMB, on the Panda Bonds market for non-Chinese issuers, with the aim of diversifying its sources of financing and its investment base as much as possible.
The agreement also establishes the possibility of sharing experiences and exchanging information through mutual consultations, joint conferences, business symposia and seminars on current topics of mutual interest, or even by collaborating on different research studies, sharing information from their research teams, or through other dedicated services that the two institutions develop or participate in, so as to better understand the market and the challenges in each country.
About Bank of China
Bank of China is a state-owned commercial bank that provides a wide variety of financial services for clients on the entire Chinese continent, as well as in 51 countries and regions. The Bank¿s main business is commercial banking, which includes corporate banking, personal banking and financial markets services.
About Instituto de Crédito Oficial (ICO)
Instituto de Crédito Oficial (ICO) is a Corporate State-owned Entity attached to the Spanish government's Ministry of Economy and Business. ICO has become a point of reference in the financing of both SMEs and large-scale investment projects. ICO contributes to inclusive and sustainable growth, promoting those economic activities, which, due to their social, cultural, innovative or environmental significance, are worthy of promotion and development.