IIC Receives Its First Funding in Renminbi Under a Reciprocal Funding Agreement with the Bank of China Limited
09/12/2011Bank of China to grant a 160 million renminbi credit facility, and the IIC will make available a treasury investment in an equivalent amount
Signing from left to right: Mr. Rogozinski, IIC General Manager and Mr. Xu Chen, General Manager of Financial Institutions, Bank of China Limited
Beijing, China – On September 13, 2011, the Inter-American Investment Corporation (IIC) and Bank of China Limited signed a reciprocal funding agreement stating the parties’ intention to provide each other with funding in the form of loans and deposits. The RMB 160 million credit facility provided under the agreement will be the IIC's first source of funding in China’s national currency, the renminbi. The IIC is proving to be a pioneer among multilateral financial institutions by conducting a pilot program of this kind in China’s local currency.
The purpose of the facility is to provide financing in renminbi to SMEs in Latin America and the Caribbean that have trade relations with China. In addition, the IIC will begin investing in financial instruments issued by the Bank of China for an equivalent amount, thus enabling the IIC to enhance the geographic diversification of its treasury investments and consolidate its relationship with a new strategic partner and shareholder.
According to IIC General Manager Jacques Rogozinski, "The agreement signed is extremely important for the Corporation because we will be able to offer our clients a broader basket of loan options while helping further the Chinese government’s efforts to internationalize the renminbi. This first step towards setting up facilities in renminbi is in keeping with the IIC’s strategy of providing its clients with financing options in currencies better matched to their needs for financing and thus boost their competitiveness."
As Xu Chen, General Manager of Financial Institutions Department of Bank of China, puts it, "The agreement represents a bold innovation with multilateral financial institutions and a win-win situation in deepening the mutual partnership and cooperation."
The signing ceremony took place at the headquarters of the Bank of China at 11:00 a.m. Signing for the IIC was General Manager Jacques Rogozinski. Mr. Xu Chen, General Manager, Financial Institutions, signed for Bank of China.About Bank of China
As China’s most international and diversified bank, Bank of China provides a comprehensive range of financial services to customers across the Chinese mainland, Hong Kong, Macao, Taiwan, and 31 countries. The Bank's core business is commercial banking, including corporate banking, personal banking, and financial market services. By June 2011, Bank of China reported assets of RMB 11.48 trillion, with a ROE and ROA of 19.87% and 1.28%, respectively. Bank of China maintains prudent financial performance with a core capital adequacy rate of 10.01%.About the IIC
The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. It does so by providing financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2010, the IIC reached US$1.4 billion in assets and approved 49 operations channeling US$374.8 million to SMEs in the region For more information on the IIC’s activities, please visit www.iic.orgClick here for the Chinese version of this press release
Contact: Juan Eduardo Zuluaga
Telephone: (202) 623-3812