Bank supports Chinese projects based in Central, Eastern Europe

The much anticipated second Belt and Road Forum for International Cooperation in Beijing attracts attention not only in China but also abroad. Many of the government delegations traveling to the forum are again joined by companies exploring business opportunities.

Among them is Vienna-based Raiffeisen Bank International. The Austrian banking group - also known as RBI - has had a branch in Beijing since 1999 and is one of the most active organizations involved in the Belt and Road Initiative among Western banks. A main reason is RBI's large network in Central and Eastern Europe and its long-standing presence in the Chinese market.

"With our head office in Austria and subsidiary banks in 13 CEE countries, we have one of the largest networks among Western banking groups in CEE," said Peter Lennkh, an RBI board member responsible for corporate banking. "The BRI eventually leads into CEE, a region we regard as our home market. Therefore, RBI is in an ideal position to play an active role in the initiative."

With this strong presence, RBI serves Chinese companies active in CEE.

"As a universal bank, we can offer our Chinese clients a full range of banking services, from bank account and payroll services over structured project finance to mergers and acquisitions advisory," Lennkh said, adding that RBI has almost full coverage of the CEE region.

Among RBI's customers are some of China's best-known companies from the infrastructure and technology sectors. Often these corporations are active in more than one CEE market, which is why they need a bank partner that is able to offer comprehensive services throughout the region.

RBI is not only partnering up with Chinese companies. During the state visit to China in April 2018 of Austrian President Alexander Van der Bellen, who was accompanied by Chancellor Sebastian Kurz, five cabinet ministers and a large business delegation, RBI further strengthened its relations with Chinese financial institutions.

"We are pleased that we were able to sign a framework agreement on cross-border renminbi cooperation with one of China's leading policy banks," Lennkh said.

In addition, RBI has cooperation agreements regarding CEE with a large Chinese commercial bank and a major investment fund in place.

According to Lennkh, a promising future market segment in China is Sinosure-covered export finance. Since last year, RBI is among those foreign banks accepting China's Export Credit Agency Sinosure as China sovereign risk. This gives RBI the possibility to offer Chinese, Austrian and other foreign companies producing in China and exporting to third-country markets attractive financing facilities for their exports.

"We are convinced that this product will be well-received in the market, as third-market cooperation projects of Chinese and foreign companies are increasing in number," Lennkh said.

Chinese investment funds are another driver for the BRI. The funds allow stronger investment in CEE companies and projects, relying on in-depth knowledge on the region and possible targets for their investment decisions. RBI is proud to have strong and active mergers and acquisitions advisory teams covering the whole CEE region.

"Already now we are in contact with some of the large Chinese investment funds regarding M&A advisory and we hope more of them will become our customers in the future," Lennkh said.

RBI was recently named "Bank of the Year in Central and Eastern Europe" by the Financial Times magazine The Banker. It is the 11th time it has been honored with this award. RBI regards Austria, where it is a leading corporate and investment bank, as well as CEE as its home market. Thirteen markets of the region are covered by subsidiary banks.

The RBI Group comprises numerous other financial service providers in areas such as leasing, asset management and M&A. In total, around 47,000 employees serve almost 16 million customers via around 2,200 business outlets, the majority in CEE. RBI's shares are listed on the Vienna Stock Exchange.

For more information, please contact Raifeisen Bank International AG Beijing Branch

website: www.rbinternational.com

email: michael.reichel@cn.rbinternational.com

(China Daily 04/26/2019 page30)