World’s biggest bank keen on Kiwi projects
The world’s biggest bank wants to fund more New Zealand infrastructure, citing bridges, railways, motorways, schools, and power and water services.
Yi Huiman, global chairman of the Industrial and Commercial Bank of China, is in New Zealand to meet government officials and a statement from the bank detailed expansion plans here.
Karen Hou, the bank’s New Zealand chief executive, said her organisation saw infrastructure as a priority.
“Mr Yi’s visit shows how important New Zealand i s to our global business. Infrastructure is a big focus for ICBC and we see an opportunity to support New Zealand with its investment in this area,” Hou said.
“We can bring not only funding but experience and expertise across a range of infrastructure classes, such as bridges, railways, motorways, schools, power and water.”
Don Brash, the former Reserve Bank governor, is the bank’s chairman and he also cited infrastructure funding.
“In Auckland alone, more than $ 20 billion of spending is planned for transport infrastructure in the next decade,” Brash said. “This investment is needed to keep pace with population growth, upgrade existing infrastructure and improve productivity. New Zealand needs a diversified mix of funding sources for this investment and we can play a role in this.”
The bank said a further $ 84m of capital had been injected this year into ICBC NZ to support its lending growth, with infrastructure lending one of the key objectives.
“ICBC lent $ 100m on the Transmission Gully project and we are looking forward to helping New Zealand fund other essential projects. We see New Zealand as one end of an important economic corridor stretching from the South Pacific through southeast Asia to Europe,” Hou said.
David Tripe, associate professor of banking studies at Massey University, said Auckland was an obvious market for the three big Chinese banks now operating here.
Those are ICBC, Bank of China and China Construction Bank.
Tripe said the Chinese banks had a competitive advantage in dealing with Chinese firms and migrants, but were also well aware property development is a risky business, dealing with i ssues such as undercapitalised developers.
A few months ago, China Construction Bank NZ got a $ 140m capital injection from its Beijing- based parent in a move its boss has described as a “vote of confidence” in the lender’s local unit.