Re-loan Financing of International Commercial Loan
I. Introduction ICBC can directly transfer the loan obtained from foreign commercial banks to clients. International commercial bank is the funds borrowed from foreign banks at the interest rates of the international market.
II. Business features The term of the international commercial loan is generally 5-10 years. The interest rates is the one adding (subtracting) an interest rate difference on the London Interbank Offered Rate (LIBOR).
III. Prospective clients Mainly provide domestic clients with funds support to import technology or equipment.
IV. Operation process 1. Clients propose application in the local development and reform committee and industrial responsible departments to obtain the approval of the development and reform committee for using the foreign funds index. 2. After approval for the project, ICBC will carry out review and evaluation of the project. 3. ICBC signs Foreign Exchange Re-loan Contract with clients. 4. Sign loan agreement with foreign banks and borrow the funds. 5. Execute the project.
V. Notices 1. What are the difference between re-loan of international commercial loan and foreign exchange project loan? In nature, there is small difference between re-loan of international commercial loan and foreign exchange project loan. In case of shortage of domestic foreign exchange funds, using of international commercial loan can supply the insufficiency of the domestic mid and long-term foreign exchange funds. In the operation procedures, using international commercial loan is subject to the approval of the development and reform committee for using the foreign funds index.
2. Can a client obtain the guarantee of the Chinese government? No, not yet.
3. What are the approval procedures of ICBC? Refer to the approval procedures of foreign exchange project loan.
VI. FAQs What are the competitive advantages of ICBC? (1) As the commercial bank with outstanding international reputation, ICBC can finance for clients in the international financial market and provide the funds loan at lower cost. (2) ICBC has close business relations and cooperation with world-class international banks and can rapidly and smoothly completes various businesses including loan. (3) ICBC has successfully completed re-loan of commercial loan for many enterprises and accumulated rich experience. (4) ICBC can provide clients with swap service of the fixed liability coast according to the actual situations, to aim at avoiding foreign exchange rate and interest rate risks of the project.