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Corporate Banking

Syndicated loans

Introduction

Syndicated loans refer to the local and foreign currency loans or credit extension business that two or more banks or non-bank financial institutions provide for borrowers via a correspondent bank at the appointed time and proportion in accordance with the same loan agreement on the basis of the same loan terms.


Features

1. Being able to meet the large-sum financing needs of high-quality large enterprises and projects.

2. Being able to effectively disperse loan risk for banks.

3. Being able to satisfy large-sum financing needs, credit extension or credit support for customers, including large-sum financing needs in project financing, mergers and acquisitions (M&A), debt restructuring, import and export trade, daily operation and other processes.


Scope of application

For large-sum loans with one of the following circumstances, the use of syndicated loans is encouraged:

1. Financing for large group customers and large projects and financing for various large-sum working capital.

2. The total financing of a single enterprise or a single project exceeds 10% of our bank's balance of capital.

3. The total lines of credit to a single group customer are more than 15% of our bank's balance of capital.

4. The borrower chooses banking financial institutions for project financing through competitive negotiations.


Procedures

1. The customer submits an application and the project-related materials to our bank and issues a power of attorney to entrust our bank as the leader of the syndicate.

2. Our bank conducts preliminary due diligence and seeks the approval in accordance with relevant procedures, and issues to the customer a letter of accepting his or her entrustment after obtaining the approval.

3. Our bank provides the customer with a plan of arranging syndicated loans, and after obtaining the consent and confirmation of the customer, our bank takes the lead to organize the syndicate.

4. The customer signs a syndicate loan contract.

5. Loans are released in accordance with the contract.


Documents to be submitted

1. Basic information on the borrowing enterprise.

2. The feasibility report and basic information on the loan-invested project.

3. The security structure and measures, and the basic information of the guarantor.

4. Withdrawal plan and repayment plan.

5. Other documents that our bank deems necessary.


(Note: For details, please call 961 111 or come to nearby GRCB outlet.)

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