The usage of RMB continues to expand globally, recent developments have included:

• Ford Motor pays first RMB-denominated dividend from China to the US headquarters. See: Ford Motor pays first RMB-denominated dividend - Working Capital - The Corporate Treasurer
• detailed explanation of the implementation rules for cross-border RMB cash pools. The PBoC gives important details on the new arrangements coming into force in June 2015. See:  Breakdown of China’s new nationwide RMB pooling rules - Analysis - The Corporate Treasurer. 

China Merchants Bank launches USA’s 1st RMB denominated CD with SCB

China Merchants Bank’s (CMB) New York branch has launched the United States’ first Renminbi (RMB) denominated certificate of deposit (CD) from its new global CD program with Standard Chartered acting as sole arranger for the programmwe and debut issuance. Proceeds from the offering will be used to finance RMB denominated trade between the US and China.

The issuance offers U.S. domiciled institutional investors a new way to invest in RMB denominated assets.  Previously, participation from this investor base was limited to select offshore RMB bond and discount note issuances which were registered with the SEC or issued by supranationals (such as the International Finance Corporation).

For its program launch, CMB’s New York branch issued a CNH 50 million one-month CD.  Tenors of CDs issued from the program, however, can range from one week to several years providing CMB flexibility to meet its funding requirements.

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CTMfile take: The time for exploiting the growing RMB infrastructure is now.