Citi has implemented a global renminbi (RMB) netting solution for Samsung Electronics, one of the world’s leading electronic companies.
In March this year, Samsung Electronics started trading the RMB directly with the South Korean won (KRW), converting its trading flows between China and Korea into RMB and settling transactions between its headquarters and Chinese subsidiaries more efficiently.
Samsung Electronics and Citi subsequently pioneered a global RMB netting solution, managed by the tech company’s global netting centre and utilising Citi’s global platforms and netting services.”This solution brings significant opportunities for more effective liquidity management and working capital optimisation for Samsung Electronics,” commented Citi.
“This is a landmark mandate, with Samsung Electronics conducting the world’s first intercompany cross-border netting transaction using RMB, leveraging the most recent nationwide policy reform in China and paving the way for other multinational corporations [MNCs] to follow.”
“In-house banks [IHBs] and netting structures are an increasing trend for our clients as they take treasury centralisation to the next level,” said Amol Gupte, regional head of treasury and trade solutions, Citi Asia Pacific.
“Citi is honoured to be part of this historical transaction, which would not have been possible without the confidence instilled in the market by the Chinese and overseas regulators, especially in Hong Kong and South Korea.”
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