RMB cross-border lending milestone for Standard Chartered
(28 November 2012 – China) Standard Chartered Bank (China) has announced it is the first foreign bank to be granted approval for a RMB denominated loan quota on behalf of a leading American multi-national company (MNC) specialising in global manufacturing and technology.
A sum of RMB 3.3 billion (A$505 million) cross-border lending quota from People’s Bank of China (PBoC) is part of a pilot program supporting foreign and local MNCs that have plans to channel surplus RMB capital in mainland China to fund RMB denominated activities overseas.
The scheme allows two parties to sign lending agreements directly, agree on interest rates and manage loan drawdown themselves instead of a traditional entrustment loan (with banks as intermediary agents).
Standard Chartered Global Product Head of Transaction Banking, George Nast, said, "The RMB cross-border lending programme is a significant milestone of the RMB’s journey of internationalisation.
"This programme will bring greater efficiencies and control to Shanghai-based treasury centres where corporations can negotiate for better lending frequency and rates that match their actual needs.
"We are extremely proud to have been a key participant in the pilot programme as it has allowed us to execute on our client centric strategy and deliver greater efficiencies to our client’s treasury management processes through our global liquidity management capabilities which offer unprecedented visibility and utilisation of cross-border flows in emerging markets."
The scheme allows two parties to sign lending agreements directly, agree on interest rates and manage loan drawdown themselves instead of a traditional entrustment loan (with banks as intermediary agents).
Standard Chartered Global Product Head of Transaction Banking, George Nast, said, "The RMB cross-border lending programme is a significant milestone of the RMB’s journey of internationalisation.
"This programme will bring greater efficiencies and control to Shanghai-based treasury centres where corporations can negotiate for better lending frequency and rates that match their actual needs.
"We are extremely proud to have been a key participant in the pilot programme as it has allowed us to execute on our client centric strategy and deliver greater efficiencies to our client’s treasury management processes through our global liquidity management capabilities which offer unprecedented visibility and utilisation of cross-border flows in emerging markets."
Subscribe