The product - USD L/C issuance against RMB Master L/C offered by CCBC HK is to provide a solution to PRC related companies (act as middlemen) located in Hong Kong of trade business.

After receipt of an RMB master L/C from CCBC PRC Branches, the beneficiary (usually the L/C applicants’ related companies in Hong Kong as the middleman) can apply the issuing of slave L/C in USD currency to the ultimate Suppliers thru CCBC HK by using the RMB L/C as a collateral for the issuance. After receipt of the documents under the slave L/C, CCBC HK will discount the RMB master L/C and effect payment under the slave L/C. In addition, CCBC HK provides the hedging tools to lock the rates by using the IRS, NDF (or DF) to mitigate both interest rate and exchange rate risk. This ensures that the RMB L/C fully covers the financing on the USD parts. The tenor of RMB L/C can be as long as 1 year.