ANZ expands Asia presence via deal with China Eximbank

The pact enables ANZ to provide China Eximbank with finance facilities, offshore yuan bonds and other resources.

ANZ Bank has signed another agreement with a major Chinese bank as it ramps up attempts to capture trade flows and cross-border deals between China, Australia and New Zealand.

ANZ's co-operation agreement with the Export-Import Bank of China (China Eximbank) was signed in Beijing and comes a month after rival Westpac struck the first such agreement between an Australian lender and China Eximbank.

The Chinese government established the bank in 1994 to finance and promote the export of Chinese products and services. It is one of three institutional banks created to support Chinese trade and industry policy.

China Development Bank (CDB) is another of the three, and together with China Eximbank signed loans worth US110 billion ($103bn) to other developing country governments and companies over the past two years, according to estimates from the Financial Times.

ANZ will provide China Eximbank with finance facilities, offshore yuan bonds and other resources, and ANZ chief executive Mike Smith said this would help the Australian lender capture more trade and investment flows between Chinese companies and Australia and Asia.

The move comes after ANZ signed memorandums of understanding with CDB in 2009 and 2010 to establish a similar relationship that supports trade links between China and Australian and New Zealand companies.

View the full story in The Australian.

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Tags: ANZ Asia expansion, ANZ China Eximbank, ANZ Asia