Shanghai Pudong Development Bank-RMB Loans

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RMB Loans

SPDB may provide RMB loan facility with a tenor over 4 months to foreign banks with RMB business licenses. SPDB will grant such foreign bank a credit line for RMB loans based on its overall credit standing, business demand and business potential (such credit line is incorporated in SPDB's overall credit management). Then, both sides shall sign a RMB Loan Contract. The foreign bank can submit a written withdrawal notice or send a SWIFT message to SPDB to confirm the transaction in case it has a need for RMB funding. And SPDB will execute the fund transfer in a timely manner to cater for the foreign bank's need.
RMB Loans specially refer to RMB loan services that SPDB offers to foreign banks to meet their need for RMB turnover funds.

Qualification for the Borrower

The borrower must be a branch(subsidiary) of a foreign bank registered in China according to the approval from the PBOC and has obtained the RMB business license;
The borrower owns a capital fund that conforms to the standard;
SPDB has granted the borrower a credit line for RMB loan based on its overall credit standing, business demand and business potential (such credit line is incorporated in SPDB's overall credit management).

Tenor & Interest Rate

The tenor for such RMB loans ranges between 4 months and 3 years.
The interest rate is to be determined by the tenor and risk factors. Usually, it will be several basic points lower than the base loan rate regulated by the PBOC.

Application Procedure

RMB Loans application shall be submitted to the Financial Institutions Department HO and the related authorized branch Financial Institutions Department. Upon the RMB Loan Contract is signed by the two banks, the foreign bank shall submit a written withdrawal notice or a SWIFT message to confirm the transaction to SPDB, and SPDB will execute the fund transfer in a timely manner pursuant to the foreign bank's requirement.

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