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.