DBS launches cross-border RMB lending in Suzhou

It’s the first Singaporean bank to jump on the RMB bandwagon.

Companies can now obtain cross-border RMB loans from DBS in Suzhou, under the recently launched Suzhou Industrial Park cross-border renminibi (RMB) transactions initiative.

DBS China announced today that it has facilitated one of its customers from Southeast Asia based in Suzhou Industrial Park (SIP) to obtain an RMB denominated loan from its Singapore headquarters under the new initiative.

The bank’s Singapore headquarters is currently actively working with companies in the industrial township to prepare for RMB bonds issuance in Singapore. DBS is the first Singapore bank to set up operations in the SIP in 2007 and is the only Singapore-headquartered bank to pilot the new RMB initiative.

Here’s more from DBS:
Last week, the Nanjing branch of the People's Bank of China, China’s central bank, issued a directive to allow banks in Singapore to provide RMB denominated loans to companies located in the SIP, without limiting the annual foreign debt quota of the banks.

In addition, there is an expansion in the usage of the loans, allowing companies to entrust loans to their subsidiaries.

DBS Bank (China) Limited Chief Executive Officer Neil Ge said, “We are honoured to participate in this new initiative, playing an active role in supporting the transformation of SIP’s financial services sector as well as facilitating RMB internationalisation and contributing to the close bilateral cooperation between China and Singapore. Being one of the pioneering banks of this new cross-border RMB lending initiative demonstrates DBS’ strength in cross border connectivity.”

“DBS is one of the first movers in the cross border RMB business and provides offshore RMB products and services in Singapore, Hong Kong and Taiwan, with seamless connectivity across the three markets, to help clients capture opportunities in a timely manner and to further support the development of RMB internationalisation.”