Standard Chartered provides loan to Qianhai project

The Hong Kong branch of Standard Chartered Bank agreed to supply a cross-border yuan-denominated loan of 100 million yuan (US$16.2 million) to Shenzhen International Holdings for its project in Qianhai, the pilot financial hub in Shenzhen, according to a statement released by the British lender today.

The Shenzhen-based logistics operation company, which is incorporated in Bermuda, is controlled by the Shenzhen Municipal People's Government State-owned Assets Supervision and Administration Commission.

The funds raised from the loan will be used to develop the company's Qianhai project in Mawan area of Qianhai, according to the statement.

Earlier this year the Hong Kong branches of 15 banks agreed to provide 2 billion yuan worth of cross-border loans at lower rates than the bench mark lending rate of 6 percent on the mainland. The funds will be used for 26 projects in Qianhai, according to media reports.

"The rising adoption of Qianhai cross-border loans demonstrated that the product is now well recognized by corporations as an alternate fund-raising platform for the yuan," Gloria Chow, managing director and head of origination client coverage of Standard Chartered Hong Kong, said in the statement.

"This will invigorate the flow back of yuan into China and further deepen the already growing market."