Standard Chartered China completes RMB2.7b cross-border lending deal

It's the first deal post-PBOC's circular.

In a release, Standard Chartered Bank (China) has announced that it has recently completed a RMB 2.7 billion cross-border lending deal for a worldwide manufacturer.

This deal is the first RMB cross-border lending transaction for Standard Chartered after “The Circular on Simplification of Cross-border Renminbi Business Process and Completion of Related Policies” was announced by the People’s Bank of China(“PBoC”).

RMB cross-border lending business is expected to support foreign and local MNCs to lend RMB to overseas companies, by which the MNCs can make full use of its surplus RMB funds in mainland China to support its needs for the RMB in offshore markets.

Standard Chartered China’s recent RMB cross-border lending deal enables the client’s headquarter in China to lend a total amount of CNY 2.7 billion to their offshore related companies with a tenor of one year.

This deal is the first RMB cross-border lending transaction for Standard Chartered China after the PBOC’s circular. According to the new regulation, domestic banks can directly process RMB cross-border lending business for corporate clients after carefully examining the client’s applications.

Prior to the regulatory update, Standard Chartered China had to seek approval for a RMB denominated loan quota on behalf of client from PBoC Shanghai Branch.

This deal was handled directly by Standard Chartered China after Due Diligence and related documents checking. This simplified the process significantly and improved efficiency.

Sridhar Kanthadai, Regional Head of Transaction Banking for North Asia, Standard Chartered Bank, said, “The circular, which has announced a series of simplifications of RMB cross-border business processes, is an important milestone for RMB internationalisation. We are delighted that Standard Chartered helped our client enjoy the convenience and benefits brought about by the circular. The pace of RMB internationalisation has increased this year, and this was also reflected in our Renminbi Global Index. By being on the forefront of regulatory and market developments, our extensive footprint and expertise place us in an ideal position to continue our contribution to RMB internationalisation, and provide bespoke RMB products and services to our clients.”