Credit Bank of Moscow has signed a multicurrency loan agreement with O'stin

05.06.2020

Credit Bank of Moscow has signed a multicurrency loan agreement with one of the largest clothing retailers, O'stin, for the amount of 2 billion rubles. According to the agreement, the Bank provides funds in RMB for importing goods from Chinese suppliers. Financing is provided from funds raised by the CBM as a result of a syndicated loan deal, the participants of which are large regional banks in China.

CBM has become the first private Russian bank to receive a syndicated loan from Chinese financial institutions. Funds are allocated to companies as part of trade finance transactions between China and Russia.

The Bank also opens RMB letters of credit for O'stin in order to pay for contracts with Chinese suppliers. The letter of credit form of payment is widely used in trade operations between Russian and Chinese partners. It allows to get financing by closing the risks for participants in the transaction. In China, discounting and forfaiting is practiced on letters of credit issued, and Russian buyers are financed both in the currency of the contract and in a currency different from the contract.

«We see Asia as a strategically important region for conducting operations within the framework of trade finance,» said Natalya Bakhova, head of the CBM Documentary and International Business Sales Department. — The trade turnover between China and Russia in 2019 counted to 110,9 billion US dollars, while the share of China in the foreign trade turnover of Russia counted to 16.64%, compared with 15.73% in 2018.

In November 2019, the Credit Bank of Moscow received an AA + credit rating on the Chinese national scale from Lianhe Credit Ratings. The bank has opened correspondent accounts in Chinese banks, established keys for exchanging SWIFT messages, signed inter-factor agreements, and opened limits for international transactions. We plan to actively expand our business in this direction."