BBVA Shanghai branch complements the bank’s global footprint
BBVA closes its first corporate loan in the local currency renminbi in China. (Credit: Banco Bilbao Vizcaya Argentaria, S.A.)
BBVA’s Shanghai branch has closed its first corporate loan in the Chinese currency renminbi (RMB) with Toyota Motor Finance China. The loan is a short term working capital loan to support Toyota’s corporate activity in the country. The transaction represents an important milestone for BBVA as it is the first one that the bank executes in the local currency after obtaining its renminbi licence in China.
BBVA and Toyota, the biggest automobile company in the world, have a global relationship spanning across a number of countries in BBVA’s footprint and with this transaction, now in China. This working capital loan aligns well with BBVA’s ambition to work with multinational companies in China and opens up new opportunities for the bank in the largest automobile market globally. Toyota, through its auto finance subsidiary in China, will use the loan to offer financing to the end buyers of their cars.
BBVA Shanghai branch opened in 2016 with foreign currencies (non RMB) banking license and obtained its renminbi license in 2020. The renminbi license allows BBVA to provide banking products and services in Chinese currency, predominant in domestic transactions and with a growing international importance. With the RMB licence the bank can widen its business scope and have access to broader clientele in China, a key market for most multinationals.
BBVA Shanghai branch complements the bank’s global footprint and allows its multinational clients to access BBVA’s wide range of corporate banking products in China. The branch specializes in transaction banking products, such as trade finance and guarantees, deposits, short and long term financing, foreign exchange and advisory services.
This value proposition and holistic service is particularly interesting for Chinese companies with operations in BBVA’s footprint and for BBVA’s multinational clients with operations in China, given that with BBVA they can: have their needs attended in local language and time zone; enjoy a globally coordinated service in terms of credit limits and relationship management; and diversify their funding and rest of banking services.
Pablo Riquelme, Head of BBVA CIB In Asia, comments: “China is an important contributor to global economic growth, offering great opportunities to multinational clients. BBVA, through its Shanghai branch, complements its product offering in China, facilitating global clients interested in the vast opportunities in this country. We are very excited to work with Toyota now also in China, helping them through this loan to diversify their funding sources in the country”.
Source: Company Press Release