UOB inked a deal with Shanghai Qilu Industrial (Group) to provide up to 3 billion yuan, or around S$600 million, in financing to companies based in Shandong, China, to help them expand into Southeast Asia, the Singapore bank said on Tuesday.
The memorandum of understanding (MOU) calls for UOB and Shanghai Qilu to help Shandong’s leading logistics, construction, infrastructure and industrial companies expand into Southeast Asia as well as to promote bilateral trade, investment and talent development between Shandong and Singapore, it said.
Shanghai Qilu, which was set up in 1992 to spur economic and enterprise growth in Shanghai Pudong and Shandong, is a conglomerate focused on investment promotion, logistics and real estate, the statement said.
“As the leading state-owned company under the Shandong provincial government, Shanghai Qilu helps accelerate economic and industry transformation by encouraging cross-border flows of capital and talent,” Wang Qian, chairman of Shanghai Qilu, said in the statement. “We will tap overseas investments and markets to deepen the capabilities of Shandong-based companies and to facilitate their expansion as they seize business opportunities from the Belt and Road Initiative (BRI).”
Jimmy Koh, managing director of group wholesale banking at UOB, said in the statement that UOB hoped to help more Shandong-base companies expand into Singapore and the region.
That followed UOB’s 2017 deal with Qingian Group, Shandong’s largest construction conglomerate, to support its forays into Southeast Asia, the statement said.
The MOU was signed on Tuesday at the 20th Singapore-Shandong Business Council Meeting in Jinan, which is Shandong’s provincial capital, it said in the statement on Tuesday.