China CITIC Bank Corporation Ltd. (0998.HK, 601998.CN) said Wednesday that it has entered into an interest-rate swap agreement with Citibank, marking the first deal of its kind in mainland China, news website caixin.com reported Wednesday. The interest rate agreed was 5.75 percent, which was set based on the renminbi Loan Primate Rate (LPR). The term of the agreement is two years. On October 25, the People’s Bank of China officially launched the quoting and issuance system for LPR as part of a move to accelerate interest rate liberalization. The LPR is regarded as the best lending rate that commercial banks offer to their most important customers.
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