Citi completes its first cross-border RMB lending transaction
25 January 2013
By Asia Asset Management
Citibank (China) announced on Thursday (January 24) the completion of its first cross-border lending transaction in RMB.
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 center in Singapore is a critical step to expand and include RMB into the company’s treasury management currency basket.
Yigen Pei, country head of Citi Transaction Services for China, said: "We are excited to bring this milestone transaction to realisation. 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. Citi is an active participant and driver in RMB internationalisation initiatives in China. With Citi’s unmatched global presence and expertise in global liquidity management, we work closely with our clients to achieve their treasury management strategy and objectives by providing cross-border solutions, such as this, under the backdrop of the fast development of RMB going offshore.” Mr. Pei added.
Amol Gupte, region head, Asia Pacific of Citi Transaction Services, said: “As the leading global transaction bank, Citi is proud to offer RMB-based liquidity management solutions to our clients, connecting Shanghai with other global financial centres such as Hong Kong, Singapore, as well as London, and to be actively supporting the advent of the world's newest global currency.”
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