RegionsChinaCiti Completes First Cross-Border RMB Lending Transaction

Citi Completes First Cross-Border RMB Lending Transaction

Citibank (China) Co (Citi China) has completed its first cross-border lending transaction in renminbi (RMB).

The bank said that the transaction, conducted on behalf of a European food company, is structured to optimise the company’s treasury activities by leveraging its China operation’s surplus cash. The lending to its group treasury centre in Singapore is a critical step to expand and include RMB into the company’s treasury management currency basket.

“We are excited to bring this milestone transaction to realisation,” said Yigen Pei, country head of Citi Transaction Services for China. “This creates a new treasury solution which will help our clients to connect China with their regional and global treasury centres and achieve greater efficiency in their global fund usage and allocation. This will also signify important progress of RMB internationalisation by establishing a bigger role for the currency in multinationals’ treasury management globally.”

The People’s Bank of China first introduced the RMB cross-border initiative in July 2009 to provide companies with greater foreign exchange (FX) savings and operational efficiencies as well as to promote the internationalisation process of RMB.

Related Articles

China after the national congress – the outlook for the RMB

Capital Markets China after the national congress – the outlook for the RMB

8m Richard Hartung
China’s ‘unsustainable’ debt crisis is an investor's gold mine

China China’s ‘unsustainable’ debt crisis is an investor's gold mine

10m Victoria Beckett
Financial regulators crack down on individual misconduct

China Financial regulators crack down on individual misconduct

11m Graham Buck
China’s sovereign credit rating downgraded by Moody’s

China China’s sovereign credit rating downgraded by Moody’s

1y Graham Buck
De-risking and the decline in correspondent banking

Asia Pacific De-risking and the decline in correspondent banking

1y Henry Balani
London keeps top ranking for offshore RMB FX transactions

Banking London keeps top ranking for offshore RMB FX transactions

1y Graham Buck
IMF upbeat on global financial stability

China IMF upbeat on global financial stability

1y Graham Buck
Drought stress testing tool launched for banks

Banking Drought stress testing tool launched for banks

1y Graham Buck