(Yicai Global) Dec. 6 -- The Guangdong branch of Industrial and Commercial Bank of China [SHA:601398] (ICBC), one of China's large state-owned banks, inked an agreement with Guangzhou City Construction Investment Group Co. yesterday, per which it will provide a CNY20 billion (USD3 billion) line of credit to the latter to boost its rental housing business, New Express reported today.

The funds will go to integrate, construct, operate and manage policy-oriented housing (including public rental housing, low-rent housing and talent apartments) and the existing proprietary housing of Guangzhou City Construction Investment Group, and to renew old urban districts to build new rental housing.

To help the company quickly carry out related business, the funds also include CNY20 billion in preliminary start-up financing for projects, making ICBC the first commercial bank to provide such funds for the group's projects.

ICBC struck the cooperative deal with Guangzhou's city government on Nov. 16, and will provide total financial support of CNY500 billion for the local rental housing market. The cooperation with the group marks ICBC's second concrete investment in the project. ICBC signed an investment agreement for CNY5 billion with SCI Group on Nov. 20 to aid the latter's development of its self-held rental housing business.