For Immediate Release
Citigroup Inc. (NYSE: C)
Hong Kong - Citi Hong Kong Markets traded the first CNH/USD Cross-Currency Swap transaction using the three-month CNH HIBOR as the pricing benchmark with Bank of China (Hong Kong) Limited (BOCHK). This landmark transaction marks the first trade of its kind in the market and is a new milestone in the offshore RMB business following the announcement by Treasury Markets Association (TMA) on April 25 to launch the CNH HIBOR fixing in June 2013.
The transaction, serving as a tool to hedge against interest-rate risks, will be effective in early July with a 12-month contract period. Interest rates for the two currencies are fixed every three months and are calculated based on the three-month CNH HIBOR and the three-month USD LIBOR, respectively.
This deal underlines Citi's strong RMB trading capabilities and continued focus in establishing our offshore RMB presence with innovative products and solutions. As a pioneer in RMB internationalization, Citi has been providing the full suite of RMB products and services using our global network to provide robust solutions to our clients.