Standard Bank and ICBC Announce Expected Partnership Benefits
Following a meeting between Standard Bank Group chief executive Jacko Maree and Industrial and Commercial Bank of China (ICBC) chairman Jiang Jianqing, the two banks have announced their expectations of their proposed partnership. Capital is to be used for accelerated organic growth, to support investments, to build critical mass in key markets and to establish a global growth fund for private equity investments. Additional funds have been set aside for strategic capital reserves. Of the US$2.4bn proceeds of the sale, US$400m is earmarked for growth in South Africa, US$450m will be used in the rest of Africa, US$300m will be set aside for international activities and US$200m will be contributed towards the global resources fund to be established by Standard Bank and ICBC. US$200m will be set aside for private equity investments. The largest portion, US$900m has been earmarked as strategic capital reserves. Standard Bank has established a framework of co-operation with ICBC whereby they will become the ‘partner of choice’. The two banks will have access to enlarged client bases and will do joint marketing to both existing and prospective clients. The focus will be on China, Africa and other emerging markets. The banks have identified a list of 20 key customers to whom they will jointly market.