[SINGAPORE] OCBC plans to deploy £10 billion (S$17.4 billion) in financing over the next six years to support foreign direct investment into the United Kingdom, the bank said on Wednesday (Apr 2).
The funds will be channelled into “priority British growth sectors” – including in energy, transportation, infrastructure, data centres and real estate – by 2030.
To that end, OCBC inked a memorandum of understanding in London with the UK’s Office for Investment to promote the country as a hub for Asian businesses, investors and services. This marks the first time that a Singapore or Asian bank has landed a UK financing deal of such scale.
The agreement was signed on Wednesday by UK Minister for Investment Poppy Gustafsson and OCBC’s head of global corporate banking Elaine Lam during the latter’s visit to the UK.
Under the partnership, OCBC will seek to position the UK “as a hub for businesses, investors and services involved in and leading the energy transition”.
The bank will also assist UK firms looking to expand into Singapore and the broader South-east Asian region.
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The initiative builds on the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership last year, which OCBC said could boost trade flows from the UK to South-east Asia.
Nikesh Mehta, British High Commissioner to Singapore, noted that the £10 billion investment plan coincides with preparations to mark 60 years of diplomatic relations between the two countries in 2025.
“OCBC’s commitment demonstrates the confidence that Singapore’s financial institutions have in the UK economy, and how our financial centres can partner to drive mutual prosperity,” he said.
The bank said that its London branch – established in 1969 – has recorded about 20 per cent annual revenue growth on average over the past five years, making it the largest in the bank’s international network.
“Our UK business has grown significantly over the years, driven by developments in sectors such as real estate, renewables, energy transition as well as digital and core physical infrastructure,” said Lam.
“These align with the priority sectors outlined in the UK’s industrial strategy and we will double down on our efforts to drive further growth in these areas.”
One company that OCBC has backed in the UK’s digital infrastructure sector is Virtus Data Centres, a subsidiary of Singapore’s ST Telemedia Global Data Centres.
With financing support from the bank, Virtus has established 17 data centres across four campuses in the Greater London area. The company recently announced plans to develop data centre campuses in Germany and Italy, and is also exploring further expansion within the UK.
The lender’s latest financial results showed a net profit of S$7.6 billion for the financial year ended Dec 31, 2024, marking an 8 per cent increase from the previous year.
OCBC shares closed S$0.01 or 0.06 per cent higher at S$17.22 on Wednesday, before the announcement.
