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In an unprecedented sortie into the global financial market, a
State-owned bank has teamed up with an international partner to join Europe’s
most heated competition in a banking takeover.

Yesterday, China Development Bank (CDB) - the largest of the three
policy banks specializing in government-sponsored domestic infrastructure
investment - dramatically increased its international profile by
announcing that it will buy up to 5 percent in London-based Barclays,
Britain’s third largest lender.

Barclays is trying to close a merger with ABN Amro, Europe’s eighth
largest bank in total assets.

In an official statement, CDB Governor Chen Yuan expressed “strong
support” to the Barclays management’s global strategy.

And that support is mainly in cash, John Studzinski, senior managing
director of Blackstone - which is providing financial advisory services
to CDB in its Barclays deal - told China Daily.

CDB’s Barclays deal is the first time that a State-backed financial
organization has become an active player in an international buyout of a
large financial service network.

According to an announcement by CDB, it will join Temasek Holdings of
Singapore to invest up to 13.4 billion euros ($18.5 billion) in Barclays
through subscription of shares. And that, in turn, will provide
additional capital for Barclays in its ongoing bid for Amsterdam-based ABN
Amro.

By Zhang Ran