REUTERS - Silicon Valley Bank, the banking unit of SVB Financial Group (SIVB.O), said it has signed a joint venture agreement in China with Shanghai Pudong Development Bank Co, Ltd.
Silicon Valley will make a capital contribution of $75 million to the joint venture and own a 50 percent stake in it, the company said in a regulatory filing.
The joint venture has to meet the approval of the U.S. and Chinese regulatory authorities, SVB said.
SVB had said in October that it was working towards establishing a banking platform focused on technology and life science companies in China.
In October, the company also opened an international subsidiary in Beijing - SVB Business Partners (Beijing) Co Ltd. It also has invested in Chinese companies like Zhejiang Uni-power Guaranty and Zero2IPO Group and other venture capital funds.
The company hosted its first board of directors meeting in Shanghai in November -- the first time it has held its board meeting outside the United States.
China Mobile had bought a 20 percent stake in Shanghai Pudong Development Bank in March for about $5.8 billion to help the mobile operator dominate the country’s nascent mobile e-commerce market.
Shares of the Santa Clara, California-based SVB closed at $52.84 on Tuesday on Nasdaq. Their value has risen 16 percent since the company opened its Beijing unit in October.
Reporting by Rachel Chitra in Bangalore; Editing by Roshni Menon