Australian and Chinese banks sign memorandum of understanding on Agri-Business

Australia’s largest agricultural bank has signed a Memorandum of Understanding with the Agricultural Development Bank of China (ADBC), opening the door on a new level of cooperation between Australian and Chinese financial service providers.

Today’s Official Signing by National Australia Bank Group’s CEO, Mr John Stewart, and ADBC President, Mr Zheng Hui, does not involve either party taking an equity stake but is the first major collaboration between agri-banking institutions of China and Australia.

Australian Trade Minister, the Honourable Simon Crean MP, who witnessed the signing in Beijing welcomed it as the starting point from which to build another mutually beneficial connection between the Australian and Chinese economies.

“This agreement has the potential to develop into a strong, bilateral arrangement with the exchange of expertise, skills and personnel in agri-banking, exploring a new sphere of business interaction between our nations,” said Minister Crean.

The Memorandum is the culmination of 12 months friendly negotiation between the two banks on an agreement which includes the two-way transfer of agricultural and banking skills through staff exchanges and training.

“This builds on a natural fit between two major agri-banking institutions. National Australia Bank looks forward to exploring potential future collaboration in trade finance, agricultural infrastructure finance and product development,” said Mr Stewart.

“ADBC hopes to benefit from exposure to Australia’s farming and agricultural business efficiencies with plans for staff training, business study visits and increased understanding of the Australian agri-business market,” said President Zheng.

ADBC is China’s only State-owned agricultural bank, offering grain/cotton/eatable oil purchase loans, medium- to-long-term farming loans and fee-based banking services.

In February 2008, NAB became the first foreign investor in China’s trust sector when the Bank acquired a 20% stake in Union Trust Investment.

For further information:
Mr Vincent Lo
M: + 86 1350 1180 636

Ms Kirsty Boazman
M: +852 9198 1300

Mr XiaoHua Zheng
M: +86 13910885572