On July 23, 2007 China Development Bank (CDB) and Barclays announced that they will broaden their relationship from strategic co-operation to a strategic partnership as a result of which CDB will become a major shareholder and will subscribe an initial €2.2 billion of Barclays new ordinary shares or 3.1% of Barclays current issued share capital. Subject to regulatory approval and completion of the Revised Offer for ABN AMRO, CDB will subscribe up to a further €7.6 billion of Barclays ordinary shares.

China Development Bank has received financial advice from Blackstone Advisory and Blackstone Advisory has provided a fairness opinion to China Development Bank on the terms of its investment.

China Development Bank will invest a total of up to €9.8 billion (£6.6 billion) in the combined group and has entered into a strategic partnership with Barclays which establishes a framework for their strategic co-operation. Barclays will assist and advise China Development Bank in its evolution into a commercially operated financial institution. The two parties will jointly exploit international business opportunities including cross-referral of clients, extensive training and talent management, and collaboration in commodities products.

In addition, China Development Bank will use Barclays Global Investors as one of its preferred asset managers. Both parties have agreed to co-operate where further opportunities to develop new markets and products in the region are identified. Barclays will provide expertise and advice in fields including risk management, corporate governance and IT strategy and procurement. (Barclays)