Cargolux targets closer ties with three Chinese banks

Luxembourg's cargo airline Cargolux has announced plans to develop relations with three of China's largest banks.

As a member of the Luxembourg Finance mission to China this week, Cargolux representatives discussed an increased strategic cooperation and lending opportunities with the Industrial and Commercial Bank of China (ICBC), the China Construction Bank and the China Merchant Bank.

All three Chinese banks have offices in Luxembourg.

Facility agreement signed

As a first step in strengthening cooperation between the Luxembourg cargo airline and the Chinese banks, Cargolux announced the signing of a facility agreement with ICBC.

The cooperation "holds much promise for our future," said Maxim Straus, Executive Vice-President and Chief Financial Officer at Cargolux.

The agreement will support Cargolux's Chinese expansion, the partnership with Henan Civil Aviation (HNCA) and the development of Henan Cargo Airlines -- the joint venture airline that Cargolux and HNCA are setting up.

HNCA has held a 35% stake in Cargolux since 2014. Last June, Cargolux agreed to form a new carrier, Henan Cargo Airlines, to operate from Zhenzhou. 

Cargolux to support OBOR

General Manager at ICBC Luxembourg branch, Chen Fei said in a statement that the bank "is willing to take a leading role in Luxembourg's market" and "will prove to be a valuable partner for Cargolux and even Luxembourg with China".

The collaboration will involve financial innovaion and support for capacity cooperation under the One Belt, One Road (OBOR; BRI) framework.

OBOR is a comprehensive trade proposal that aims to create the world's largest economic platform. Proposed by Chinese President Xi Jinping in 2013, it seeks to build trade and infrastructure networks between Asia, Europe and Africa along the ancient Silk Road trade routes.

(Roxana Mironescu, roxana.mironescu@wort.lu, +352 49 93 748)