Standard Chartered and International Finance Corporation Trade the First Offshore USD/CNH Cross Currency Swap Referencing Loan Prime Rate and LIBOR


Hong Kong – Standard Chartered Bank and the International Finance Corporation (IFC) successfully traded the first USD/CNH cross currency basis swap (CCS) referencing the one-year CNY Loan Prime Rate (LPR) and the 6-month USD LIBOR in Hong Kong. The LPR USD/CNH CCS is a tailor-made hedging solution allowing IFC to offer local currency lending in China in support of the LPR index.

As China continues to liberalise its interest rates framework with the LPR as the newly dominant benchmark interest rate since 2019, Standard Chartered has been working closely with clients both within mainland China and offshore markets to provide bespoke hedging solutions amid rising interest rates volatility. The successful conclusion of this transaction provides a good foundation for the development of the CNY LPR market.

John Thang, Head of Financial Markets, Hong Kong & Greater Bay Area, Standard Chartered, said: “We are pleased to work with IFC on this ground-breaking transaction, supporting the IFC’s lending activities in mainland China with this customised and innovative solution. We look forward to exploring more of such opportunities as we leverage on our strengths in the CNH market to meet our clients’ cross-border trade and investment needs.” 

Philippe Ahoua, IFC Head of Treasury Client Solutions for the Asia & Pacific Region, said: “This innovative swap transaction demonstrates IFC’s continued support of growth and innovation in Renminbi hedging markets while supporting the further adoption of the Loan Prime Rate in China.”

Standard Chartered Bank is one of the major participants in the CNY derivatives trading market, with a leading market share among international banks. It is one of the 18 LPR fixing panel banks in China, a primary dealer for China government bonds, as well as a leading market maker in both CNY and CNH markets.

International Finance Corporation – a sister organisation of the World Bank and member of the World Bank Group is the largest global development institution focused on the private sector in emerging markets.

Most recent episodes

Achieving Treasury Centralisation with In-House Banking as a Service

Catherine Hill (Salesforce), Christof Hofmann and Dirk Kronshage (Deutsche Bank) join TMI's Eleanor Hill to consider how treasury centralisation can be successfully achieved...


Exploring ESG Investing

Security, liquidity and yield have traditionally been the treasurer’s top investment considerations. But with the call for greater corporate social responsibility – and the solid performance of sustainable investments – ESG is now becoming a fourth...


Crypto Assets: The Questions Every Treasurer Should Be Asking

Are crypto assets really a viable treasury investment? If so, how can you enter – and exit – the market with the least possible risk? How does the custody of crypto assets work? What are the accounting and tax...


Building a Digital Treasury: Resilience Meets Agility

Karen Gilhooly and Brian McKenney (HSBC) talk to TMI’s Editor, Eleanor Hill, about the imperative need for treasurers to invest in technology if they wish to enhance the strategic value that they bring to the...


EACT 2021 Survey: Top Trends Revealed

Jan Dirk van Beusekom, BNP Paribas, and François Masquelier, EACT, discuss the findings from the 2021 EACT Survey, which garnered responses from over 340 corporate companies. Hear a detailed overview of the key trends that have captured the attention of European...


Taking Care of Cash: Cigna Treasury’s Digital Transformation

Cigna, a global health services provider, encountered a multitude of challenges when its 70,000 employees were plunged into a remote working environment. Payments concerns, bold digital aspirations and the requirement...


Treasury on Demand: Are you Ready?

A need to react quickly to new business requirements is driving a new age in treasury, characterised by on-demand concepts. In our latest podcast covering the Journeys to Treasury report, Steven Lenaerts, BNP Paribas, and Christian Mnich, SAP, explore the drivers...


Smart Treasury: The Future is Now

In this TreasuryCast episode, our guests from Standard Chartered, Sunday Domingo and Byron Gardiner, discuss best practice approaches in a data-driven treasury environment. The experts also consider how treasury responsibilities such as working capital and...


Co-Creation in Action: Treasury Evolution

Think co-creation is just a buzzword? Then it’s time to think again. As Pierre Fersztand, Global Head of Cash Management, Trade & Payments, BNP Paribas, explains, value-adding solutions are being implemented as a...


Leading Edge Supply Chain Finance: Smart and Sustainable

TMI’s Eleanor Hill is joined in the virtual TreasuryCast studio by Gwynne Master, Managing Director and Global Head of Trade, Lloyds Bank, to discuss all things supply chain finance, an area that has faced...