On May 23, Asian Banker, an international authoritative financial media house, held the 2018 “Leadership Achievement Awards” ceremony in Beijing. The North Petroleum International Co. Ltd. won the “Bankers’ Choice Awards 2018 Best Corporate Trade Finance Deal in Hong Kong”. Wang Yuetao, general manager of ZhenHua Oil, and Yin Lifeng, deputy general manager of ZhenHua Oil and general manager of the North Petroleum International attended the ceremony and received the award.
The Asian Banker is the most authoritative strategic information provider in the financial services industry in the Asia Pacific region. The awards is currently the most prestigious and professional event with the widest coverage of the financial services industry in the Asia-Pacific region. It is the industry’s highest honor achieved by a financial institution and corporate partners in the Asia-Pacific region. The Banker Choice Awards recognizes the best business practices by companies and bank partners with strong financial strength in applying financial supply chains to create added value for upstream and downstream business activities.
The award recognized ZhenHua Oil’s important business innovation in the trading and financing sector. To offset the adverse effect of the rising US dollar interest rates on the company’s financing costs since 2017, the North Petroleum International and the headquarters’ financial department jointly undertook innovative reforms to the existing trade financing (TF) structure, and successfully introduced interest derivative products into the traditional TF structure through cross-analysis of the interest rate trend and the market capital cost. They proposed an innovative product structure that lowers financing costs without increasing risk exposure of the company, and recommended it to major partnering banks to undertake feasibility study and approval. Finally the Bank of China (BOC) in Hong Kong took a lead in completing the new business model approval and successfully promoted it. The North Petroleum International has lowered its financial costs with the new business model and created a new high in business volume with the BOC Hong Kong.