In the presence of Chinese Premier Li Keqiang and British Prime Minister Theresa May, the Memorandum of Understanding on Granting RMB 10 Billion Loans for Belt and Road Construction Projects Between China Development Bank and Standard Chartered PLC (MoU) was signed by Chairman of CDB Hu Huaibang and Group Chief Executive of Standard Chartered PLC Bill Winters in Beijing on January 31, 2018. According to the MoU, CDB and Standard Chartered PLC will enhance cooperation under the framework of the Belt and Road Initiative to promote common development. They will also make joint efforts to facilitate RMB internationalization as well as cooperation on Belt and Road construction projects. The amount agreed upon for the cooperation in the following five years is equivalent to RMB 10 billion.
The MoU is reported to be a major step taken by CDB to actively implement the outcomes of the Belt and Road Forum for International Cooperation (BRF). Under the MoU, CDB and Standard Chartered PLC will join hands to explore new models for Chinese and British financial institutions to further cooperate on Belt and Road construction projects and to create a win-win situation. In May 2017, President Xi Jinping announced at the BRF that CDB would grant special loans equivalent to RMB 250 billion for the Belt and Road construction projects, including an equivalent of RMB 50 billion for financial cooperation projects.
It is reported that CDB is the largest bank specialized in foreign investment and financing cooperation in China. As of the end of 2017, CDB has issued loans totaling more than USD 180 billion to countries along the Belt and Road. These countries are major targets of the traditional services of Standard Chartered PLC, which has established business establishments in 45 markets along the Belt and Road.