Standard Bank this week boosted its capital base following the finalisation of its strategic partnership with the Industrial and Commercial Bank of China Limited (ICBC), the world's largest bank by market capitalisation.

"I am delighted that we have completed our strategic deal within agreed time lines, substantially strengthening our capital base. We welcome ICBC as a 20 per cent shareholder of Standard Bank.
"The positive impact that this partnership will have on the future growth and development of Standard Bank is very exciting. It has given us access to capital which will enable us to continue growing and expanding in South Africa, Africa and internationally," Standard Bank Group Chief Executive, Jacko Maree, said.

The development saw the cash settlement of the deal and the issue of new shares. ICBC has acquired 11.11 per cent of the current issued share capital of Standard Bank Group from Standard Bank shareholders at a price per share of R136.00. Standard Bank in turn issued new shares, representing 11.11 per cent of its share capital, which ICBC acquired at a price per share of R104.58.
The cash injection further strengthens Standard Bank's tier one capital position, especially given the current volatility and uncertainty in world markets.

Standard Bank is now well positioned to serve as a gateway to the growing trade and investment flows between China and Africa. China is Africa's third largest trading partner with trade between the two regions expected to increase to well over $100 billion by 2010.

ICBC has more than 180 million personal banking customers and 2.5 million corporate banking customers. It has over 16 000 branches and outlets in the People's Republic of China and nearly 100 branches in the rest of the world.

ICBC Chairman Jiang Jianqing says: "I believe that ICBC and Standard Bank are a perfect match. The strategic co-operation between the two sides will be a combination of giants: between Asia's largest bank and Africa's largest bank."

Dr Jiang said that ICBC would not only support Standard Bank's expansion of its global networks, but would also join with Standard Bank in expanding overseas where appropriate.

An ICBC/Standard Bank Group Strategic Cooperation Committee has been established and will meet quarterly. "This committee has equal representation with the first joint chairmen being ICBC President Yang Kaisheng and myself," Maree added.