DBS is first Shanghai FTZ foreign bank to close deal

DBS Bank (China) has completed the first trade financing deal by a foreign bank in the Shanghai Free Trade Zone (FTZ). The deal was a cross-border foreign currency letter of credit financing solution to Jeans International Trading Co Ltd from Zhejiang which helped the firm with its funding objectives and better capital efficiency between its overseas and domestic affiliates, the bank said in a statement.

"As a pioneer foreign bank to commence operations in the FTZ, DBS has been working closely with clients such as Jeans International to capture opportunities in the FTZ, guided by latest policies and regulations," said Neil Ge, DBS Bank (China) chief executive.

DBS (China) began its Shanghai pilot FTZ sub-branch operations on Jan 7. It is the only foreign bank in the first batch of financial institutions to obtain approval to set up an outlet in the FTZ on Sept 29, 2013 and to receive operational approval on Dec 31, 2013.