Easier access for S'pore firms to yuan financing

Singapore companies can look forward to getting easier access to yuan financing under a new partnership between the Singapore Business Federation (SBF) and Bank of China.

The two organisations inked an agreement yesterday with the aim of promoting close cooperation between Singapore and Chinese companies.

Under the agreement, Bank of China will offer SBF member companies "no less than" 30 billion yuan (S$6.7 billion) credit over the next three years for those which qualify for the loans.

This is in support of the "One Belt, One Road" initiative, which seeks to improve connectivity between China and 65 other countries on an overland economic belt as well as a maritime route.

The bank, with its wide network, will support SBF member companies in expanding into China and the region.

SBF and the bank will organise regular seminars, business networking sessions and missions for Singapore companies to interact with Chinese enterprises.

Bank of China chairman Tian Guoli said the bank plans to extend credit of no less than US$20 billion (S$28 billion) this year to projects related to "One Belt, One Road", and another US$100 billion over the next three years to support related infrastructure projects.

SBF chairman Teo Siong Seng said: "The 'One Belt, One Road' initiative will bring a new level of mutual trust and cooperation between China and Asean.

"This partnership is one of SBF's efforts to strengthen cooperation with major companies in China and the region, and to build a closer China-Asean community of shared success and prosperity."

Chong Koh Ping

A version of this article appeared in the print edition of The Straits Times on November 07, 2015, with the headline 'Easier access for S'pore firms to yuan financing'. Print Edition | Subscribe