China Construction Bank (CCB) signed a Memorandum of Understanding (MOU) with International Enterprise (IE) Singapore on Monday to provide financial support to both Singapore and Chinese companies in the One Belt, One Road (OBOR) infrastructure projects.

Under the new agreement, CCB pledged to provide 144 billion yuan ($22.2 billion) of financing services to support domestic and Chinese firms to invest in the OBOR projects via Singapore. The recently signed MOU marked the first instance a Chinese bank signed with a Southeast Asian country.  

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In addition, CCB also plans to establish a center in Singapore to provide a common ground for financial and professional services needed in infrastructure investments, according to Today Online. 

 "As the regional infrastructure hub, Singapore's know-how and networks with China and Southeast Asia gives Singapore-based companies a further advantage of OBOR projects," Lee Boon Ark, IE chief executive, said.

Singaporean firms, on the other hand, can also tap the bank's network which is available in 25 countries. The bank, which currently has nearly 180 major projects under the OBOR, has a total investment amounting as much as 2 billion yuan ($300 billion). The fund is allocated to different sectors such as power generation, transportation, and mining.

"Our partnership with CCB is strategic, strengthening the critical financing element and bringing more projects to fruition," Lee said.

The OBOR is an initiative proposed by President Xi Jinping in 2013 and aims to connect the country to 65 nations in three continents including Africa, Asia, and Europe via the continental Silk Road Economic Belt and the 21st Century Maritime Silk Road.

CCB also signed an MOU with Singapore Exchange to develop Singapore's capital market. Both companies will work together to increase the number of Chinese companies floating in Singapore stock markets, particularly through SGX's Direct Listing Framework.

 "SGX and CCB will highlight opportunities for Chinese companies to issue offshore (yuan) bond, undertake mergers and acquisitions, establish cross-border asset management services and other capital market activities in Singapore," the companies said in a joint statement.

TagsChina Construction Bank, memorandum of understanding, International Enterprise Singapore, One Belt One Road, Singapore Exchange, China Silk Road Economic Belt, Maritime Silk Road Project