ABC signs $213 m contracts at loan prime rate

The Agricultural Bank of China signed two contracts worth 1.3 billion yuan ($213 million) at the loan prime rate (LPR) on Thursday and Friday.

These are the largest contracts since the People's Bank of China, the central bank, put in place a pricing system for interest rates in September.

The contracts involve a 1 billion yuan half-year loan for China CNR Co Ltd, a leading rolling stock company, signed on Thursday, and a 300 million yuan contract with Guangzhou-based Yuexiu Group, a State-owned company with a portfolio ranging from real estate to infrastructure construction. That contract was signed on Friday.

ABC said that as the first bank to make an LPR offer, it is trying to ensure a transparent interest rate for its clients.