Recently, Bank of China successfully completed two landmark RMB transactions in the United Kingdom: the first RMB loan issued overseas using funds from the Hong Kong RMB Business Funding Scheme (RBF) Bank of China Completes Landmark Cross-Border RMB Financing Transactions in the UK
Following its global expansion, and the first RMB accounts receivable financing transaction underwritten by a foreign insurance institution. These achievements mark important progress for Bank of China in expanding cross-border RMB financing scenarios and promoting the international use of the renminbi.
Opening a New Channel for Cross-Border RMB Financing
Bank of China London Branch, through Bank of China (Hong Kong), used funds from the Hong Kong RBF channel to provide a RMB 500 million loan to the overseas subsidiary of an energy company. This represents the first time that RBF channel funds from Hong Kong have been used to extend a loan overseas.
Compared with conventional RMB loans, RBF channel funding offers advantages such as lower interest rates, more stable funding supply and broader application scenarios. The successful completion of this transaction opens a new channel for cross-border RMB financing and further promotes the international use of the renminbi.
To further meet enterprises’ demand for offshore RMB financing, Bank of China subsequently provided an additional RMB 460 million loan to the same company, demonstrating its strong professional capabilities in delivering efficient cross-border financial services.
Establishing a New Risk Management Model for RMB Financing
In another transaction, Bank of China provided RMB 140 million in accounts receivable financing for an overseas telecommunications project of a Chinese enterprise in the UK. This financing was underwritten by the globally renowned insurance market Lloyd’s of London, marking the first RMB financing transaction insured by a foreign insurance institution.
This milestone represents an industry leading collaboration between Bank of China and a foreign insurance institution, demonstrating innovation in integrating RMB financing with international risk management solutions. It also creates a new model for Chinese enterprises to use RMB in overseas trade financing projects.
Bank of China will continue to deepen financial innovation, enhance service capabilities, and promote the wider international use of the renminbi, contributing financial support to high-level opening-up and global economic cooperation.
