DBS Bank is the first foreign bank to sign a trade finance deal in the Shanghai free trade zone (FTZ).
The bank’s sub-branch in the FTZ provided a cross-border foreign currency letter of credit financing solution for Jeans International Trading from the Chinese province of Zhejiang.
Neil Ge, CEO of DBS Bank China says: “As a pioneer foreign bank to commence operations in the FTZ, DBS has been working closely with clients such as Jeans International to capture opportunities in the FTZ guided by latest policies and regulations. We look forward to further leveraging our strong Asian network to roll out solutions of great value to our clients as well as contributing to the development of the FTZ.”
Zhang Lifa, president of Jeans Holding, explains that the facility has helped the company address its regional funding costs and cashflow needs. “It has also paved the way for us to capture new opportunities from the FTZ and renminbi internationalisation,” he adds.
DBS China commenced its FTZ sub-branch operations on January 7.