Earlier this year, the People’s Bank of China (PBoC) issued its Administrative Measures over Pilot Projects on Settlement of Overseas Direct Investments in Renminbi (the “PBoC Measures”). The PBoC Measures permit the PBoC, under a pilot project, to loan renminbi to Chinese investors to fund outbound acquisitions. The PBoC Measures are expected to have a positive impact on leveraged buy-out (LBO) firms in China that acquire interests in non-Chinese companies. Effectively, the PBoC Measures extends the M&A loan capacity of Chinese banks from Chinese domestic M&A transactions to overseas, non-Chinese M&A transactions. For a more detailed discussion of the PBoC Measures, please click here.