DBS given green light to extend RMB loans in China's SIP
The China Post news staff
June 22, 2014, 12:00 am TWN
TAIPEI, Taiwan -- The Development Bank of Singapore (DBS) has become one of the banks allowed to extend cross-border renminbi (RMB) loans for companies in China's Suzhou Industrial Park (SIP), the bank's China branch announced on Friday.
DBS China said the headquarters in Singapore has already extended an RMB loan to a Southeast Asia-based company operating in SIP.
The China branch stressed that DBS is the only Singapore-based bank allowed to introduce cross-border RMB loans at SIP.
DBS China also revealed that it has signed letters of intent with many SIP companies concerning the loan service.
The loan service that has been enabled by China announced a new initiative last week to allow eligible companies and individuals in SIP to conduct cross-border RMB transactions with Singapore.
Banks in Singapore will now be allowed to lend RMB to companies in SIP, and firms there can issue RMB-denominated bonds in Singapore.
Neil Ge, CEO of DBS China, said: "We are honored to participate in this new service, helping transform the Suzhou Industrial Park's financial services sector, accelerate RMB's internationalization, and build closer ties between China and Singapore."