The bank's China branch declared that the Development Bank of Singapore (DBS) has turn into one of the banks permitted to extend cross-border renminbi (RMB) loans for companies in China'sSuzhou Industrial Park (SIP).
DBS China said that the headquarters in Singapore has already extended an RMB loan to a Southeast Asia-based company operating in SIP.
The China branch emphasized that DBS is the only Singapore-based bank permitted to introduce cross-border RMB loans at SIP.
DBS China in addition disclosed that it has signed letters of intent with many SIP companies concerning the loan service.
The loan service that has been facilitated by China declared 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 at present 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.