State-owned firm in Sanya secures cross-border loan via EF account

Sanya Haitang Bay Investment Holding Co Ltd recently successfully completed a cross-border RMB financing transaction in a special way.

It did so by using the Hainan Free Trade Port's multi-functional free trade accounts, known as EF accounts, achieving an interest rate as low as 2.5 percent.

As a key player in the development of the Sanya Haitang Bay area and a State-owned enterprise in Sanya, the company took advantage of the innovative financial policies of the Hainan FTP to conduct its first overseas RMB borrowing through the EF account.

That accomplishment represents a significant step forward in using these policies for cost-effective cross-border financing and offers a practical model for other State-owned enterprises in Sanya to explore new financial strategies.

The interest rate for the loan was 50 basis points lower than the current one-year Loan Prime Rate (LPR) of 3 percent.

This not only reduces the company's financial costs, but also leverages the EF account's capabilities for managing exchange rate risks — providing strong financial support for expanding its cross-border operations and improving overall fund management efficiency.