Banco XCMG S.A. Completes First Foreign Exchange Settlement and Sale Transaction with Newly Gains Foreign Exchange License Approval in Brazil

2021-07-29 16:36 9674

POUSO ALEGRE, Brazil, July 29, 2021 /PRNewswire/ -- Banco XCMG S.A., the first wholly-owned overseas bank of leading construction machinery manufacturer XCMG (000425.SZ), has been approved for a foreign exchange license, allowing the bank to provide more in-depth financial services for regional partners and customers, as well as further helping its main business to reduce costs, increase efficiency and control risk.

Banco XCMG S.A. Completes First Foreign Exchange Settlement and Sale Transaction.
Banco XCMG S.A. Completes First Foreign Exchange Settlement and Sale Transaction.

Banco XCMG S.A., opened in July 2020 in Pouso Alegre, is the Chinese manufacturing industry's first overseas bank and the first Chinese-invested enterprise bank in Brazil. Upon receiving the license, the bank will be able to save exchange costs for XCMG Brazil at more favorable exchange rates, which is of great significance to improve the overall operating efficiency of XCMG's two companies in Brazil.

"The next step is for Banco XCMG S.A. to gradually hedge our foreign currency exchange to help XCMG Brazil lock in operating costs, prevent risks in the foreign exchange market, concentrate on the integrated development of our main business in the construction machinery market and ultimately provide more innovative, localized services for our Brazilian partners," said Wang Min, CEO an Chairmanof XCMG.

The foreign exchange license will expand Banco XCMG S.A.'s innovative service capabilities based on the real needs of customers. It is aimed at providing "equipment manufacturing + equipment finance" solutions to customers through integrated operation with XCMG Brazil, combined with an adjusted credit policy. A top-three equipment leasing company in Brazil has already purchased 42 units of XCMG excavators through Banco XCMG S.A.

Since opening, Banco XCMG S.A. has been faced with challenges including insufficient channels to expand funding sources but now it is working with eight external financial institutions to obtain an unsecured credit line of 225 million reais. The cost of capital has been reduced greatly, varieties of financing have been fruitful, and the maximum financing period has reached three years.

The bank has also focused on team building and cross-cultural exchanges between China and Brazil, encouraging staff to put forward suggestions for the bank's future development, offering them a sense a belonging.

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Source: XCMG
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