United Parcel Service (UPS) has executed a commercial paper transaction denominated in the offshore renminbi currency to fund its projects in China.
The issuance, made on June 15, totaled CNY630 million (US$99 million) and is the first by a foreign non-financial company, the Atlanta-based logistics giant said.
The transaction 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,” said Brendan Canavan, UPS Asia Pacific Region president.
UPS, the world’s biggest package delivery service, has been investing significantly in the technology and logistics infrastructure of China, its largest market, since 2002.
To date, UPS has invested more than $1 billion in the market, including funding for two air hubs in Shanghai and Shenzhen that serve trade flows within and outside Asia.
Photo: adkorte
