CDB to provide US$1-bln credit line to Russian bank

Published: 18 Jun 2009 00:52:36 PST

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Jun. 18, 2009 (China Knowledge) - China Development Bank (CDB), which was converted from a policy lender into a stockholding commercial bank last year, will provide US$1 billion in credit to Russia's Vnesheconombank (VEB) to fund projects implemented in Russia by Chinese and Russian partner firms, said VEB on Wednesday.

VEB also said that the Chinese bank has agreed to extend another US$310 million in loans to the Russian lender to finance the construction of a cement plant in Slantsy, Leningrad.

In February, CDB and PetroChina<601857><0857><PTR>, the country's largest oil producer, signed an agreement with Russia's state-owned Rosneft Oil to lend the latter US$25 billion to secure 15 million tons of crude oil supply annually for the next 20 years.

CDB plans to sell RMB 3 billion in RMB-denominated bonds in Hong Kong by the end of this month to both institutional and retail investors, according to an earlier report from China Knowledge.

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