SINGAPORE - United Overseas Bank has signed a memorandum of understanding with Shanghai Pudong Development Bank (SPD) to serve companies hoping to tap opportunities from China's massive Belt and Road Initiative.
Under the agreement, the two banks will collaborate on solutions that cover investment advisory, cross-boarder yuan transactions, syndicated loans, project and trade finance and cash settlement. SPD and its clients will be able to connect with UOB's foreign direct investment ecosystem partners for advisory services in areas such as investment incentives, local regulations, tax, company incorporation and legal matters.
The partners will also seek to strengthen interbank business such as lending and deposits, and will connect start-ups with financial technology ecosystems to access alternative financing.
UOB and SPD are long-time business partners, with UOB being appointed 20 years ago as SPD's sole Singapore-dollar clearing bank.
"Through collaboration with strategic partners such as SPD Bank, we will strengthen our efforts in helping companies tap the increasing regional cross-border flows arising from the Belt and Road Initiative and other regional connectivity initiatives," UOB head of group wholesale banking Frederick Chin said in a statement.
SPD executive vice-president Wang Xinhao described the deal as "a strong testament of both banks' commitment to provide companies with comprehensive services and solutions in China and South-east Asia".
UOB shares traded at $26.67, down 0.45 per cent or 12 cents, as at 1.09pm on Wednesday after the announcement.