Standard Chartered Successfully Completes RMB Cross-border Lending for Nokia Siemens Networks


Standard Chartered processes over CNY 10 bn in cross border lending

10 October 2013, Shanghai – Standard Chartered Bank (China) Limited (“Standard Chartered China”) today announced that it has recently completed a CNY 2.5 billion cross-border lending deal for Nokia Siemens Networks (China) Ltd (“NSN China”), an international mobile broadband specialist.

The RMB cross-border lending deal enables NSN China to lend within the quota of CNY 2.5 billion to their offshore related companies with  a tenor of one year. Through this loan, NSN China can include the RMB into its portfolio of working capital currencies to better manage their global liquidity positions and streamline its treasury operations. To date, NSN China has completed two RMB cross-border lending drawdowns amounting to CNY 500 million.

This is the seventh RMB cross-border lending deal completed by Standard Chartered within three months after “The Circular on Simplification of Cross-border Renminbi Business Process and Completion of Related Policies” (“the Circular”) was announced by the People’s Bank of China (“PBoC”). Within this short span of time, the total RMB cross-border lending amount processed by Standard Chartered China has exceeded CNY 10 billion.

Cross border loans are a natural progression for corporates which have accumulated liquidity through a period of conducting cross border trade with China. Standard Chartered is the first foreign bank to complete the RMB cross-border lending deal on behalf of a corporate. Over the past quarter, Standard Chartered has completed RMB cross-border lending deals for seven corporate clients.  These clients include Multinationals and large domestic enterprises, covering a variety of sectors that include automobile manufacturing, electronic products, industrial materials, watch retail, etc.

Johnny Ho, Head of Regional Treasury Centre, Greater China & Japan, Nokia Siemens Networks (China) Ltd, said, “ RMB cross-border lending opens a channel for the  movement of onshore RMB liquidity offshore. The Circular announced by PBoC offers corporates increased liberty and flexibility when conducting business transactions in the RMB. Through cross-border lending, we achieved centralised management and effective use of funds at the group level, and significantly reduced finance cost. We look forward to continued introduction of policies that bring about greater convenience for enterprises doing business in and with China.”

In addition to RMB cross-border lending business, the Circular also significantly simplified the process of RMB cross-border settlement. After the Circular was announced, Standard Chartered China introduced a web-banking service for clients to achieve paperless processing and real-time collection for RMB trade settlement. Standard Chartered China’s RMB cross-border settlement volume has grown over 50% after the circular was released. 

Sridhar Kanthadai, Regional Head of Transaction Banking for North Asia, Standard Chartered, said, “We have seen a significant growth in interest and client discussions on how to best tap on the potential benefits the recent circular offers. Today’s announcement is testament to our client centric commitment to build on our advisory capabilities, unparalleled network and understanding of the latest regulatory developments to help clients take advantage of opportunities and benefits presented by the internationalisation of the RMB.”

Most recent episodes

Podcast - Journeys to Treasury Deep-Dive: Cash Flow Hedge Accounting at JT Group

Listen to this audible case study, which provides a lens over the details of a recent cash flow hedge accounting project undertaking by the JT Group treasury team.


Podcast - Innovation as an Enabler: Sustaining Global Trade Finance in Uncertain Times

J.P. Morgan's Bayo Osolake, who joins Eleanor Hill (TMI) to discuss how treasurers can facilitate global trade in the currently turbulent macroeconomic environment.


Relative Normality On Horizon — But Divergent Monetary Policy Pathways Likely

Welcome to the latest edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management.


Audio TMI - MMF Reform Proposals Threaten LVNAV Viability for European Treasurers

Proposed MMF changes currently being debated at European Commission level endanger the utility of one of the most popular forms of MMF used by corporate investors across the continent.

Audio TMI - Special FX

Two experts from NatWest share the inside track on how treasurers can better manage FX risks by shaking up legacy processes and old-fashioned thinking, improving data coll...


Audio TMI - Roadmap Towards a First-Class Group Treasury

As the perennial debate continues around the pros and cons of a centralised tre...


Audio TMI - How Etihad Covered all Three ESG Elements in One Sustainability-Linked Financing

Etihad Airways recently raised US$1.2bn in the first sustainability-linked loan in global aviation with terms that relate to all three areas of ESG.


Reducing Friction in International Payments: Five Steps for Treasury Teams

What are the steps that treasury teams can take to remove roadblocks in processing international payments? Daniela Eder, Gibran Maqsood, and Karsten Becker (Barclays) to answer this question.


Keeping the Plates Spinning: the Art of Treasury Project Management

Sandra Shen (Actualize Consulting) joins TMI's Tom Alford to offer professional insight into what defines successful treasury project management. 


Audio TMI - ESG: Time to Decide

The pressure to comply with ESG initiatives is being felt by corporates like never before, with ESG-compliance a common concern among treasury departments.