ABC Signs RMB1,3 bn LPR Loan Contracts
OREANDA-NEWS. December 16, 2013. Beijing Branch and Shanghai Branch of Agricultural Bank of China Limited (ABC) signed a loan contract priced on Loan Prime Rate (LPR) with China CNR Corporation Limited. The contract term was six months and contract value RMB1 billion.
All the loans were issued on the same day. On the following day, ABC Guangdong Branch also signed a LPR-priced loan contract with one-year term and a RMB300 million value with Guangzhou-based Yuexiu Group. It’s learnt that this was the largest-amount LPR-priced loan that had been issued since LPR centralized quotation and issuance system was officially launched.
According to ABC principals concerned, as a core member of the self-discipline mechanism for market pricing and one of the first LPR quoting banks, ABC makes great efforts in LPR quotation and actively explores application of LPR in ABC loan pricing. The aim is to improve efficiency and transparency of loan pricing and provide clients with better services.
LPR is the loan rate implemented by commercial banks for their premium clients, and other loan rates can be generated by adding or reducing points on this basis.
Under the LPR centralized quotation and issuance mechanism, quoting banks independently quote their LPR, designate an issuer for weighted average of the quotation to form their LPR quotation average rate, and release it to the public. During the initial operation, one-year LPR is publicized to the society.