China Bank Achieves Dual Milestones in Cross-Border RMB Financing
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Recently, Bank of China (BOC) in the UK successfully executed two landmark RMB transactions:
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The first overseas loan using Hong Kong RMB Business Fund (RBF) channels;
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The first RMB accounts receivable financing underwritten by an international insurance institution.
These transactions demonstrate BOC's progress in expanding cross-border RMB financing channels and offering innovative solutions for overseas corporate financing.
Through BOC Hong Kong, BOC London provided a 500 million RMB loan to the overseas subsidiary of an energy company, marking the first use of Hong Kong RBF funds for an offshore loan. Compared with standard RMB loans, RBF channel funds offer lower interest rates, more stable funding, and broader usage flexibility.
To further support the company's overseas RMB financing needs, BOC subsequently issued an additional 460 million RMB loan, showcasing the bank's ability to provide efficient and professional cross-border financial services.
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BOC London also provided 140 million RMB in accounts receivable financing for a Chinese telecom company's overseas project. This transaction represents the first RMB financing insured by a leading global insurance institution, Lloyd's of London.
The deal highlights BOC's innovative approach to integrating risk management and RMB financing with international insurance partners, setting a new benchmark for RMB-based trade finance in overseas projects.
BOC will continue to advance financial innovation, strengthen cross-border service capabilities, and provide practical solutions to meet the evolving financing needs of Chinese enterprises abroad.
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