VTB’s branch in Shanghai has issued RMB loans to Chinese subsidiaries of Sportmaster Group, a leading Russian sporting goods retailer. The first tranches of a credit line totaling RMB 15.3 million (RUB 90 million) were used to increase working capital and to finance capital investment in the development of Sportmaster’s retail chain in China.
“This deal reflects VTB’s two main priorities: helping clients implement major projects in China through financing and cash management products, and working with the national currencies of Russia and China,” said VTB Senior Vice President and Head of the Financial Subsidiaries Division Mikhail Yakunin. “VTB’s resources in Russia and China make doing business easier for Chinese subsidiaries of Russian clients by giving them access to the bank’s standard instruments, adapted to Chinese business requirements.”
“We are pleased to be starting practical cooperation with Sportmaster Group in China, and are very optimistic about our client’s project,” said Alexander Milyukov, head of VTB’s Shanghai branch. “Expanding yuan and ruble settlements is a major priority for VTB on the Chinese financial market.”
“The ability to get RMB financing in China is very important, as it allows for more flexible and effective business development and helps reduce currency risks,” said Dmitry Barkov, Sportmaster’s representative in South-East Asia. “We rely on the Chinese national currency and on cooperation with VTB’s branch in China. Partnership with VTB is the key to our success.”
VTB’s branch in Shanghai, PRC, was established in 2008 and is the only CIS bank with a license to conduct banking operations in China. In November 2010, the bank became a market maker for the RMB/RUB pair on the Chinese Currency Exchange.
Sportmaster Group is the leader in the retail and wholesale sporting goods market in Russia and the CIS. The company is currently building its retail chain in China.