VTB Bank has signed an agreement with Agricultural Bank of China (ABC) on derivative financial instruments in global markets, becoming the first Russian bank to enter into an agreement of this kind with a major financial institution in mainland China.
The agreement significantly increases the range of options available to hedge against FX and interest rate risks both for clients of the bank and VTB’s own treasury operations. The deal covers ABC’s entire branch network, meaning that instruments such as options, forwards and swaps will be available in locations including Beijing, Singapore, Hong Kong, Tokyo, Frankfurt, Dubai, Sydney, Seoul and New York.
«With relations between Russia and China continuing to strengthen, our clients are increasingly interested in using complex financial instruments on the Chinese market," Deputy President and Chairman of VTB Bank Management Board Herbert Moos said. «Agricultural Bank of China is VTB’s trusted partner. This agreement marks a new stage in our relationship, and creates new opportunities for Russian companies working with partners in mainland China.»