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  Home Page > Corporate Banking >Bill Business >Bill Re-Discounting >Commercial Draft Buy-and-Resell (Repurchase)
Commercial Draft Buy-and-Resell (Repurchase)
 

I. Description
Commercial draft buy-and-resell (repurchase) refers to the financing act of a financial institution (seller and rebuyer) applying to ICBC Bills Discounting Department and related outlets of ICBC (buyer and reseller) for the discount of some discounted or transfer discounted undue commercial drafts in a form without changing the bill owner, the buyer and reseller making payment to the seller and rebuyer according to the par value and the mutually agreed repurchase term and price after deduction of interest, and upon maturity, the seller and rebuyer repurchasing the commercial drafts from the buyer and reseller as per the par value.

II. Target Customers
Financial institutions with the bill business qualifications. The commercial drafts involved in ICBC's repurchase business are limited to bank acceptance bill.

III. Features and Advantages
i. This business type allows financial institutions to adjust capital surplus and deficiency, enhance the asset liquidity and simultaneously maintain asset returns;
ii. The flexible term facilitates short-term financing of financial institutions, avoiding extra interest beyond the short-term financing needs, and minimizing idle funds;
iii. It can evade the interest rate risk and guarantee capital gains
iv. Easy procedures and quick availability of funds highly conform to financial institutions' demands for rapid financing.

IV. Documents Required
Refer to the Commercial Draft Rediscounting.

Note: The information provided on this page is for reference only. Concrete business shall be subject to the announcement and provisions of the local outlet.


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