- POSTED: 20 Jun 2014 10:52
The move comes after Singapore and China announced a new initiative allowing banks in Singapore to issue RMB loans to companies in the Suzhou park.
SINGAPORE: DBS has introduced cross-border renminbi (RMB) loans for companies in the Suzhou Industrial Park, the bank’s China branch announced on Friday (June 20).
The move comes after Singapore and China announced a new initiative to allow eligible companies and individuals in the Suzhou park to conduct cross-border RMB transactions with Singapore. This means banks in Singapore will be allowed to lend the Chinese currency to companies in the Suzhou park. Firms there can issue RMB-denominated bonds in Singapore, while equity investment funds in the park can directly invest in Singapore-based companies.
DBS said in a statement it has issued a RMB-denominated loan from its Singapore headquarters to a customer from South-East Asia based in the Suzhou Industrial Park, and has agreed to issue RMB loans to a couple of other companies. The bank’s Singapore headquarters is also working with companies in the industrial township to prepare for RMB bonds issuance in Singapore.
Mr Neil Ge, CEO of DBS Bank (China), said: “We are honoured to participate in this new initiative, playing an active role in supporting the transformation of Suzhou Industrial Park’s financial services sector, as well as facilitating RMB internationalisation and contributing to the close bilateral cooperation between China and Singapore.”