ICBC, Standard Bank ink deal to set up resource fund

Industrial and Commercial Bank of China<601398><1398> and South Africa's Standard Bank have inked an agreement to set up a US$1 billion global resource fund, Reuters quoted an unidentified source as saying.

ICBC acquired 20% stake in the largest African bank for US$5.5 billion last October, and since then, the two sides have been in talks on setting up a global resource fund, focusing on investing in mining and energy industries in both China and South Africa. The duration period of the fund is ten years, according to an earlier report.

It is also reported that the two lenders will each invest in US$200 million in the fund, and a third party will fund the remaining part. ICBC may announce the deal as early as this week, according to the source.