About the product
The Bank provides financing to domestic enterprises according to the financing guarantee or standby letter of credit issued by overseas correspondent banks, or the full deposit of overseas institutions as pledge.
Product features
The product can solve the financing needs of subsidiaries or affiliated companies of overseas enterprises in China.
Application
Enterprises with subsidiary companies or affiliated companies at home and abroad which need to obtain domestic financing due to business activities.
Rate
According to the different financing products, please refer to the relevant handling fee standards of the Bank, and the financing interest rate is subject to the domestic and foreign currency loan or trade financing interest rate of the Bank.
Handling process
1. An overseas institution opens a financing letter of guarantee or standby letter of credit to the Bank through its bank, or an overseas institution provides the Bank with a pledged full deposit.
2. The Bank provides credit to the domestic borrowing enterprise (domestic subsidiaries or domestic affiliates of overseas institutions).
3. After the approval of credit granting, the Bank handles related financing products and issues loans to the borrowing enterprise.
Case
A Hong Kong-based company has a registered subsidiary A in China. Because a project was in need of RMB funds, the company applied to an overseas bank to open a letter of guarantee (or standby letter of credit) to the Bank. Upon receipt and approval of the letter of guarantee, the Bank provided RMB credit to the domestic enterprise, and made credit granting arrangements according to the conditions of enterprise A and the contents of the letter of guarantee and provided financial support to enterprise A.
