Posted on 07/19/2008 9:17:06 AM PDT by KingJaja
HONG KONG - China Development Bank may be turning its attention from taking a piece of troubled Citigroup to investing in Nigeria, seizing an opportunity to channel its monumental resources toward the oil-rich West African country.
China Development Bank is one of the three policy banks created by Beijing, placed under direct jurisdiction of China’s State Council and charged with funding major infrastructure projects. It is in talks to buy a $5 billion stake in Nigeria's United Bank for Africa, the biggest financial institution in West Africa by asset value.
The Chinese lender is bargaining for some management control of the African bank and to restructure its operations to lower loan risks. But United Bank of Africa has yet to agree to the suitor’s terms, the mainland business weekly Economic Observer reported over the weekend, citing an unidentified source close to China Development Bank.
The paper further reiterated earlier reports that China Development Bank had agreed to join hands with Saudi Prince Alwaleed bin Talal in setting up a fund worth about $8 to $10 billion to inject in Citigroup (nyse: C - news - people ), the American banking giant still trying to find its way out of the morass of subprime mortgage obligations gone sour. The deal, however, was “stalled from the U.S. side.”
Taking a share of United Bank of Africa would give China Development Bank plenty of financing opportunities in the country’s projects involving oil and other minerals.
(Excerpt) Read more at forbes.com ...
Is this the same Nigerian bank I keep getting all those crazy money-making emails from?
Actually, from a business standpoint, this makes alot of sense for China.
The Chinese are betting that African economies will grow and grow fast. Do you think they see something that nobody in the West sees?
I think if I had to choose between a failed industry that is going bust everyday, and a nation that not only could thrive, but give me the corner market on their abundance of fuel, I would go with the latter. With this kind of deal, Nigeria is sure to grow and grow fast. The question is, why didn’t we think of that?
A. Because we all just want to get along?
B. We're not after the big prize?
C. We're lazy and stupid ?
D. Our guvmint is dumber then owl shit?
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