Deutsche Bank China has cooperated with Brazil-based Sao Simao Co - a subsidiary of China's State Power Investment Corporation (SPIC) - to complete the first yuan-oriented loan offering in the Latin America market, with the issuance of 400 million yuan ($54.77 million) in short-term loans to overseas clients, Shanghai Securities News reported on Friday.
The Sao Simao financing project adopts domestic yuan financing and a cross-currency swap transaction structure for the yuan and Brazil's real to lock in the interest rate of the real loan. As the only foreign-backed bank in the project, Deutsche Bank China cooperated with its branches in Brazil, the US, London, Singapore and Hong Kong. It also leveraged its global liquidity support and pricing advantages to meet clients' need for exchange rate control.
