DnBNOR Gains License to Lend in Renminbi in China

Bank believes move could boost lending activity with national shipowners

DnB NOR has strengthened its position as a leading shipping, offshore and logistics (SOL) bank in China with the gaining of a Renminbi (RMB) currency license.

The license enables the bank to provide finance to customers in China in RMB across the country.
DnB NOR believes the move could be attractive to Chinese customers, in particular state-run shipping lines, as around 95% of all China’s domestic ship finance is carried out in RMB.

The bank has built up a significant presence in China over the years and today has client relationships with many of the country’s leading owners. This new license builds upon the range of products it offers from its Shanghai branch.

China is undergoing a major expansion and renewal of its domestic shipping fleet. The ability to lend in RMB to the growing number of Chinese owners is seen as an important step forward in its China strategy by DnB NOR.
Espen Lund, DnB NOR’s country manager in China and head of the Shanghai branch, said: “This is a historic move for the bank and something we have been working towards since we opened in Shanghai in the Autumn of 2006.

“We now have the capacity to lend to owners with vessels flying the People’s Republic of China flag. It is a significant milestone for the bank.

“As far as I am aware, DnB NOR is the only foreign specialist ship finance bank with the combination of RMB capabilities and shipping expertise on the ground in China. We look forward to increasing our lending portfolio in this area,” he added.

DnB NOR’s Shanghai branch has already started lending in RMB to Nordic companies based in China who require a local currency bank.

The bank is also now able to offer deposit facilities in RMB to international companies, plus a range of payment transfer facilities and foreign exchange transactions.

Espen Lund added: “Estimates show that in the next decade, China’s domestic shipping fleet will expand significantly. There is a need for Chinese owners to have long-term relationships with lenders who precisely understand the shipping business and are able to support their expansion strategies.

“We believe DnB NOR can fulfil this role as we progress in China,” he said.