First Foreign Non-Financial Company To Issue Commercial Paper in Offshore Renminbi Market
HONG KONG–(BUSINESS WIRE)–
UPS (UPS) has executed a commercial paper transaction denominated in the offshore Renminbi currency, creating a new financial vehicle to fund growth projects in China.
The issuance last Friday, known as a CNH-denominated commercial paper transaction, totaled CNH 630,000,000 and is the first by a foreign company outside the financial sector to be executed here.
“The offshore deliverable Renminbi market has experienced rapid development since China started promoting the use of its currency in international transactions,” said Andy Dolny, UPS’s treasurer and chief investor relations officer. “Companies like UPS can leverage this liquid short-dated CNH money market as an alternative means of funding investments in China.”
“This CNH initiative will give UPS more flexibility in payment, collection and future investments in China, ultimately enabling our clients’ businesses to respond more effectively to expanding trade lanes with international markets,” added UPS Asia Pacific Region President Brendan Canavan. “UPS’s issuance of CNH-denominated commercial paper, together with our existing direct investment program in China, reflects our long-term commitment in supporting the continued internationalization of China’s currency and business environment.”
China is UPS’s largest growth market and the company has been investing significantly in its technology and logistics infrastructure there since 2002. To date, more than US$1 billion has been invested in the market, including two major air hubs in Shanghai and Shenzhen that support trade flows within Asia and with other international markets. UPS now serves more than 330 cities in China.
UPS’s CNH issuance was issued off of its existing €1 Billion Euro Commercial Paper Program. UPS has been a U.S. commercial paper issuer since 1992 and a Euro commercial paper issuer since 2005 with a rating of A-1+ by Standard & Poor’s and P-1 by Moody’s, reflecting the company’s strong financial position and financial flexibility in generating consistent earnings and cash flow.
UPS (UPS) is a global leader in logistics, offering a broad range of solutions including the transportation of packages and freight; the facilitation of international trade, and the deployment of advanced technology to more efficiently manage the world of business. Headquartered in Atlanta, UPS serves more than 220 countries and territories worldwide. The company can be found on the Web at UPS.com and its corporate blog can be found at blog.ups.com. To get UPS news direct, visit pressroom.ups.com/RSS.