World's biggest bank signs up to work with IDA

CHINA DEAL:THE WORLD'S biggest bank, the Industrial and Commercial Bank of China, has signed a memorandum of understanding to co-operate with the IDA, describing the agreement as a "bridge of economic change between Ireland and China".

The memorandum was signed on the last day of a visit to China, led by Taoiseach Enda Kenny and Minister for Jobs, Enterprise and Innovation Richard Bruton.

The agreement is with ICBC Financial Leasing, the bank’s leasing arm. This company currently leases 37 aircraft worth about €1.5 billion from its Dublin office, which opened in May 2009.

It does business in 10 countries from the Republic. Last year the company completed a dollar bond transaction to provide financing and ordered almost 100 other aircraft. Over the next six to eight years, these will be leased to global airlines from Dublin.

Mr Kenny spoke of Ireland’s attractive investment environment, based on talent, technology and “the simple and transparent tax environment”. Yang Kaisheng, chief executive of the parent ICBC, spoke in English, which happens extremely rarely in China. The bank has nearly 400,000 employees and €1.43 trillion in assets. “ICBC is the largest bank in the world, and we are ready to serve as the bridge for economic change between Ireland and China. We believe the signing of the MOU will be a milestone for a fruitful partnership,” he said.

The memorandum was signed by IDA Ireland chief executive Barry O’Leary and Cong Lin, the chief executive of ICBC Financial Leasing. Mr O’Leary said the memorandum would form a basis for further co-operation on commercial projects. IDA Ireland and ICBC Financial Leasing will hold regular meetings to explore further commercial opportunities. He said the company has an unrivalled client base and network.

“ICBC is a true global leader in financial services and its leasing arm is rapidly growing its aircraft leasing business. Such agreements provide a boost to the Irish economy as we seek to cement long-term links with China across a range of growing industries,” he added. China was a medium- to long-term prospect for securing new sources of foreign direct investment.

“There are, however, some short-term investments bubbling at the moment, and we are hopeful that at least some of these will come off over the coming months,” Mr O’Leary said.