BEIJING - China Development Bank (CDB) and Standard Chartered Bank have signed a deal worth 10 billion yuan ($1.6 billion) on Belt and Road cooperation.

CDB will make available up to 10 billion yuan in the next five years to Standard Chartered to facilitate Belt and Road projects, according to a press release from Standard Chartered Bank.

Standard Chartered will use this to support loans to fund corporate finance projects and trade finance transactions along the Belt and Road, the press release said.

The banks signed the memorandum of understanding during British Prime Minister Theresa May's three-day official visit to China, which started Wednesday.

CDB is China's largest development bank. Last year, it set up a special lending scheme worth 250 billion yuan to support Belt and Road cooperation on infrastructure, industrial capacity and financing.

With a presence in 45 markets along the Belt and Road, Standard Chartered Bank announced in December a plan to spend at least $20 billion to finance projects under the Belt and Road Initiative by late 2020.

The Belt and Road Initiative, proposed by China in 2013, aims to build trade and infrastructure networks connecting Asia with Europe and Africa based on ancient land and maritime trade routes.