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Bank of China says localization is the key to its success

China Daily UK | Updated: 2016-11-08 18:14

The Bank of China's London branch has seen its portfolio of non-Chinese corporate clients exceed 130, following years spent implementing its localization strategy.

Among those with credit relationships with the bank, 10 are UK-based Global Fortune 500 companies, and around 50 are FTSE-100 companies - comprising about 70 percent of the FTSE-100's non-financial institutions, according to the company.

As the first overseas affiliate of a Chinese financial institution and the first to be granted a branch license in the UK, the BOC London Branch provides a range of services, including commercial banking, aircraft financing, real estate financing, structured trade finance and renminbi-related products.

The expansion comes as the Sino-UK relationship enters a "golden era", with increased trade and financial cooperation. London is now the world's second-largest of shore renminbi center.

The BOC says it is committed to leading renminbi businesses in the London market by strengthening its product innovation and deepening partnerships with local corporate customers.

In February 2015, the branch completed the world's first offshore RMB aircraft financing deal by providing a 2.75 billion yuan($406 million) loan and a related currency swap agreement for the acquisition by British Airways of two Airbus A380 jets.

Last December, the branch signed a cash management agreement with the iconic UK auto maker Jaguar Land Rover, making it the first British company to establish a cross-border RMB cash pool.

"BOC London is proud of its record of satisfying customers' needs through different kinds of RMB products and services. It's also in line with the bank's strategy of promoting business with local customers," said its spokesperson.

The bank's high-profile UK clients include BP, Vodafone, and Rolls-Royce.

The London Branch has established business relationships with 18 airline companies, including the top three European legacy airlines, IAG, Lufthansa and AF-KLM, and the two biggest European low-budget carriers, Easyjet and Ryanair. Business has covered working capital loans, trade finance, money market deposits, and foreign exchange, as well as derivatives.

"In its 87 years of operating history, BOC London Branch has encountered many different market conditions and countless challenges - however, its aim to be the most localized and internationalized Chinese bank in the London market has never changed," said the spokesperson.

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