On February 20, on the first day of issuing detailed rules for using cross-border RMB in China ( Shanghai ) free trade pilot area, Baosteel Pudong International Trading Co., Ltd successfully obtained 70 million yuan cross-border RMB of working capital loans, which completed the first cross-border RMB financing business.

Detailed rules for using cross-border RMB in the free trade zone makes it clear that enterprises in the zone can borrow RMB capital from abroad, but the amount must not exceed the number equalling to actually paid capital multiple times the macro-prudential policy parameters. Among them, the actually paid capital ratio of enterprises in the zone is 1 time. The RMB capital borrowed from abroad by enterprises can only be used for production and operation in the zone, projects construction and overseas projects construction, etc.

The loan interest rate of two-year cross-border capital is 3.6%, considering composite cost of 4.17% after taxes and fees, which is far lower than the loan interest rate of domestic RMB-6.15% over the same period, making a contribution to further cutting down financial costs, and developing a new channel for Baosteel Co., Ltd in the field of RMB loan business.




Source:Baosteel News Centre



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