Related News
Deal seeks to boost RMB trade financing
Print Edition
IFC, a World Bank member, and Standard Chartered have signed a risk sharing facility, which will increase the amount of renminbi-denominated trade finance in emerging markets, an IFC statement said yesterday.
The service will be available to Chinese banks, as well as corporations and businesses in China and across Asia as well as other emerging markets involved in imports and exports to the country, it said.
This marks IFC’s first venture into RMB-denominated cross-border trade finance.
The facility of up to 3 billion yuan (US$500 million) is funded with US$250 million from Standard Chartered and US$100 million from IFC in a 50:50 risk participation agreement.
An extra US$100 million will be provided by Korea Development Bank, as well as US$50 million from Swiss Re Corporate Solutions.
During the three-year life of the program, it is likely to fund trade flows of over US$6 billion, according to IFC.
“With 28 percent of China’s international trade expected to be denominated in the RMB by 2020, we are confident that this program will play a key role in enabling trade in a currency that is heralding major changes in the financial system,” said Standard Chartered Group CEO Peter Sands.
By cutting trading costs and raising the participation of smaller, under-represented banks in the RMB trade finance market, this investment will allow suppliers of agricultural products, equipment and other essential goods to reach new markets, said IFC Executive Vice President and CEO Cai Jinyong.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
