News Column

United Kingdom : UK Export Finance begins support for renminbi loans

June 19, 2014

UK Export Finance has added the offshore renminbi to its list of supported currencies as it looks to structure its first renminbi supported deal.

UK Export Finance (UKEF) has signed a Memorandum of Understanding (MoU) with HSBC and a leading Chinese company to begin structuring its first renminbi (RMB) supported deal in 2014 for capital equipment.

The news was announced today by Chancellor of the Exchequer, the Right Honourable George Osborne MP, at the first UK-China Financial Forum in London attended by Chinese Premier, Li Keqiang.

Among the first export credit agencies to adopt the currency, the move by UKEF enables it to provide medium and long-term guarantees to support RMB-denominated transactions in any sector. RMB is now the second most used currency in trade finance after the US dollar, and one of the 10 most used currencies for payments worldwide.

UKEF expects renminbi transactions initially to fall within the aerospace industry. They will help British exporters such as Airbus and Rolls Royce to gain further access to the Chinese aircraft market and will benefit Chinese buyers by providing them with loans in their local currency, giving them greater financial stability. The Chinese aircraft market, according to aircraft manufacturers, is expected to be worth in excess of US$600 billion over the next 20 years. British exporters aiming to win contracts in the wider Chinese aviation industry are also expected to benefit.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: TendersInfo (India)

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters