(Yicai Global) May 17 -- Korea Development Bank (KDB), a state-owned policy bank in South Korea, has signed a USD200 million currency swap agreement with the Industrial and Commercial Bank of China Ltd. (ICBC), the world’s largest commercial bank by total assets, for a period of one year with the option for two extensions.
The agreement will use a committed credit line method, allowing KDB access to CNY1.3 billion in loans from ICBC, while the Chinese lender will receive KRW220 billion, South Korean Yonhap News Agency reported.
The move is a follow-up to the signing of a working agreement between the two parties last year. It marks the first deal of its kind signed between a state policy bank and a commercial bank rather than between central banks. In an emergency, funds will also be available to actively respond to the increased volatility of the financial market.
Editor: William Clegg