Citi have announced the implementation of its first RMB Cross-Border Auto Sweeping structure from China to London. The latest development allows Citi to have live automated RMB cross-border sweeping capabilities in China, Hong Kong, Singapore and London.

Citi global concentration engine

Citi’s global concentration engine allows clients to sweep true end-of-day balances into London without any loss of value. This platform also comes with tracking and reconciliation of inter-company loan positions, automated mechanisms to control lending positions, as well as reporting to meet local regulatory and reporting requirements. 

The Pentair solution

The structure has been put in place for Swiss based company Pentair - a global water, fluid, thermal management and equipment protection partner - and was implemented using Pentair’s registered entity in the Shanghai Free Trade Zone (SFTZ), thus enabling the company to integrate their daily working capital RMB balances into their global cash poo, see figure below:

Source & Copyright©2014 - Citi  

Benefits of this solution include improvements in the company’s liquidity management, capital utilisation efficiency, reduced cost in cross-border transactions, as well as intra-group financing and foreign exchange benefits.

Terri Scherber, Senior Treasury Director at Pentair, said: “Pentair was keen to take advantage of the newly deregulated SFTZ policies and connect our domestic RMB funding structures to our global liquidity pool. Citi’s automated sweeping solution now provides us a much more efficient way of managing this process.”