Reference News Network August 14 report - According to the South China Morning Post website on August 12, an Australian iron ore producer group has agreed to sign a syndicated loan agreement led by a large Chinese state-owned bank, amounting to a record 14.2 billion yuan. This is another milestone step in China's efforts to promote the global use of the Chinese yuan.
According to the report, Bank of China, which arranged this loan, stated in a statement on the 12th that this financing is the first RMB syndicated loan for an Australian local company, and also the largest offshore RMB syndicated loan for non-Chinese enterprises to date.
Bank of China said that it designed a cross-border closed-loop RMB financing solution for the group, supporting its procurement of clean energy and other machinery from China, and repaying the loan with RMB income generated from the sale of iron ore in China.
The iron ore producer said that this loan will fund its decarbonization project. The company is planning to develop what is called "green steel" industry.
At the time of signing this loan agreement, China is increasing its efforts to internationalize the RMB. At the same time, due to US President Trump's aggressive tariff and spending policies, investors' confidence in the US dollar is beginning to waver.
Earlier this month, the People's Bank of China stated at a work meeting that it would accelerate the expansion of RMB usage in trade, and further enhance the RMB's function as a financing currency. The central bank also pledged to develop the RMB offshore market and accelerate the improvement of the RMB clearing network layout. (Translated by Qing Songzhu)
On June 5, boats with colored lights passed by the Sydney Opera House in Australia. (Photo by Ma Ping)
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