News Releases

Hong Kong  – China Development Bank (CDB) and Barclays today announced that they have formed a Commodities Strategic Alliance.   Initially to be focused on the areas of energy, metals and emissions, the Strategic Alliance will combine CDB’s strong relationships and market presence in China with Barclays global commodity capability, risk management and banking expertise.

As part of the Commodities Strategic Alliance, Barclays has committed to work closely with CDB to develop commodity products origination and trading capabilities within CDB, and enhance CDB’s commodities execution and risk management infrastructure.   In exchange CDB will appoint Barclays as CDB’s preferred provider of commodity market risk hedging.

The Commodities Strategic Alliance is a critical part of CDB’s and Barclays expanding global strategic relationship announced in July this year in connection with CDB becoming one of Barclays largest shareholders.

Commenting on the Commodities Strategic Alliance, Chairman and CEO of Barclays Asia Robert Morrice said, “Barclays has enjoyed a strong, long-standing relationship with China Development Bank, and we are delighted with this further opportunity to work together. With CDB’s strong market position in China and Barclays extensive commodities capabilities, I have no doubt that this arrangement will provide substantial long-term benefits for both parties.”

Benoit de Vitry Global Head of Commodities, Emerging Markets Rates and Quantitative Analytics at Barclays Capital added, "We are delighted to have formed this alliance which allows us to accelerate our aim of building the market leading commodities business."

Deputy Governor Gao Jian of China Development Bank said, “Barclays is publicly recognized as one of the top three global commodity banks. China Development Bank is confident that Barclays is the right partner to ensure the long-term, successful development of CDB’s commodities business capabilities, as we evolve into a commercially operated financial institution.”

The initial term of the Commodities Strategic Alliance is five years, with the option to extend for a further period agreed by both parties.

-ENDS-

For further information please contact:

Clare Williams, Barclays Capital Communications
Tel: +852 2903 2298

Jonathan Williams, Barclays Capital Communications
Tel: +65 6308 3490

Notes to editors:

China Development Bank was founded in 1994, and reports directly to the State Council of China. China Development Bank specializes in financing infrastructure developments, core industries, high technology industries and key national projects. It also actively explores cooperative opportunities internationally.  China Development Bank had total assets of RMB 2,314 billion (approximately ₤150 billion) at the end of 2006.

In early 2007, the Chinese government announced that China Development Bank will transform into a commercially operated financial institution focusing on medium to long term business. For further information on China Development Bank, please visit www.cdb.com.cn/english.

Barclays is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services with an extensive international presence in Europe, the USA, Africa and Asia. It is one of the largest financial services companies in the world by market capitalisation.  With over 300 years of history and expertise in banking, Barclays operates in more than 50 countries and employs 127,000 people. Barclays moves, lends, invests and protects money for over 27 million customers and clients worldwide. For further information about Barclays, please visit our website www.barclays.com.

About Barclays Capital

Barclays Capital is the investment banking division of Barclays Bank PLC which has an AA long-term credit rating and a balance sheet of over £1.1 trillion. With a distinctive business model, Barclays Capital provides large corporate, government and institutional clients with solutions to their financing and risk management needs.  Barclays Capital has offices in 26 countries, employs over 15,700 people and has the global reach and distribution power to meet the needs of issuers and investors worldwide.

For further information about Barclays Capital, please visit our website www.barclayscapital.com.

Barclays Capital - the investment banking division of Barclays Bank PLC. Registered in England 1026167. Registered office 1 Churchill Place, London, E14 5HP, United Kingdom. Authorised and regulated by the Financial Services Authority and a member of the London Stock Exchange.