I. Description When your company intends to be listed abroad or intends to establish a window trade company/engineering contracting company or purchase foreign companies abroad, ICBC's "Cross-border Express" can offer your company a full-scale and professional supporting service like investment bank, foreign currency financing, financing, settlement and professional consultation: Brief flow chart is as follows:
When your company intends to be listed abroad, ICBC may offer investment bank service for you through its branch banks in Eastern Asia. When you are successfully listed, ICBC may remit your collected capital back to the country through its Global Express, and provide it with foreign currency financing service. If your company listed abroad intends to establish foreign-invested enterprises in China, ICBC may integrate with its branch organizations abroad; offer your newly established enterprises outer bond plus inner loan financing products. When your company intends to establish trade Window Company, establish engineering contracting company or purchase foreign companies, ICBC may integrate with foreign branch organizations and offer inner bond plus outer loan financing products for your foreign enterprises.
Besides, ICBC is able to provide your company with services like professional consultation, varied settlement, financing and risk management products, taking the inner and outer advantage of network.
II. Transaction occasion The transaction occasion includes the construction phase, follow-up investment after your successful walking outside, and financing from concerned enterprises, etc.
III. Functions and characteristics 1. This package service has integrated the functions and advantages of each product. It is able to save financial cost, avoid policy, reduce exchange rate risk and offer full-scale value-added service for your company. 2. ICBC boasts its advantage of domestic and foreign network advantage and its wide business scope. It is well able to provide your company with convenient and efficient financing services as well as the enterprises concerned.
IV. Warm tips 1. Pay attention to the financial policies both at home and abroad, try to avoid policy risks. 2. "Inner bond plus outer loan" business must accord with the regulations set by Foreign Currency Management Bureau and ICBC.
V. Cases In order to respond with the present background of national supporting enterprises' going-out, further improve the business level, one private domestic enterprise means to be listed in Hong Kong and issue a stock of 1 hundred billion USD. When ICBC gets this news, it suggests the client to adopt "Cross-border" package service. It is up to the Hong Kong holding company to design asset reorganization, package before listing and a series of other investment bank services needed for listing in Hong Kong market and make it a successful listing in Hong Kong. In order to provide the clients with convenient settlement and follow-up financing services, ICBC establishes a capital and settlement account for the listed company in Hong Kong's holding organization, ICBC in Asia. Besides, ICBC remits the 80 million USD, which is collected through listing with its "Global Express". After remittance, ICBC provides the enterprise with the principal and interest preservation according to the enterprise's risk tendency. The expected annual profit of this CP financing service will vary between 2% and 6%.
Three months later, the enterprise's Hong Kong branch begin to operate in due form, with its main business of trade and investment. Taking into consideration of the cost element, the enterprise's Hong Kong listing company chooses one domestic region to establish foreign-invested enterprises. During its construction and investment period, the company encounters cash flow difficulties due to the incomplete transaction of land certificate and other certificates and the inability to loan accordingly. Facing such a situation, ICBC integrates its ICBC in Asia, commonly provides the company with outer bond plus inner loan products. It is up to the listed company in Hong Kong to apply for the establishment of beneficiary's standby L/C certificate from ICBC. ICBC takes this certificate as a guarantee, issue RMB loan to foreign-invested companies, solves its capital problem in the construction period.