Standard Chartered Bank will invest $500m as a cornerstone investor in Agricultural Bank of China’s H-Share Initial Public Offering (IPO) in Hong Kong.

Standard Chartered said that the consideration will be financed from its internal cash resources and will be for the number of shares with a total value at the offer price of the HKD equivalent of $500m.

The two banks recently signed an agreement to develop new business opportunities together. Both parties have agreed to explore opportunities for collaboration across Standard Chartered’s international network and Agricultural Bank of China’s domestic network. This may include global financial markets, capital markets, international trade corridors, SME and consumer finance sectors. The partnership may also share knowledge, for example in economic research, and staff training.

Peter Sands, group CEO of Standard Chartered, said: “Agricultural Bank of China is a great bank with a great future. This investment is a natural next step in our longstanding relationship and it underpins our recent agreement to develop business together. China is a key market for us and our partnership is a strong symbol of our commitment there.”