Bilateral Loan

A Bilateral Loan is a form of loan business in which one Bank provides loans for one Borrower for working capital, CAPEX or General Corporate Purposes. The major advantage of a Bilateral Loan is that the Bank offers a relatively independent, flexible and customised product for the Borrower.

Syndicated Loan

A Syndicated Loan is a form of loan business in which two or more lenders jointly provide loans for one or more borrowers on the same loan terms and with different duties and sign the same loan agreement. Usually, one bank is appointed as the agency bank to manage the transaction on behalf of the syndicate members.

Features of Syndicated Loans include:

1.Large amount & long term. It can meet Borrowers' requirements for funds of long term and large scale. It is generally used for the development of new projects, large equipment leasing and M&A financing in the transportation, petrochemical, telecommunication, power and other industries.

2.Less time and effort for financing. It is usually the responsibility of the arranger to establish the syndicate after negotiation & agreement on loan terms. During implementation of the facility, the Borrower does not need to face all members of the syndicate, and relevant withdrawal, repayment of principal with interest and other administrative requirements shall be fulfilled by the Agency Bank.

3.Diversified approaches to Syndicated Loans. The same loan syndications can include many variations of loans, such as fixed-term, revolving, standby L/C line etc, depending on the requirements of the Borrower. The Borrower can also request the provision of multicurrency options within these loan variations if needed.

4.It can help Borrowers establish a good market image. Successful establishment of a syndicate comes from the participants' full recognition of a Borrower's strong financial & operational performance.

Currencies

Both Bilateral & Syndicated loans mainly adopt USD & EUR but of course RMB, GBP and other currencies are also available. Multiple currencies can also be used in a single loan on request of the Borrower.

Terms

Short term:         1 to 3 years

Medium term:         3 to 5 years

Long-term:         More than 5 years

Interest Rate

The price of a loan is composed of interest & fees. Lending interest rate shall be set, according to different Borrowers, in line with lending interest rate policies of Bank of China, lending interest rate regulations of Bank of China and, in the case of syndicated transactions, the provisions of the relevant loan contracts.

Charges

Charges can include arrangement fees, underwriting fees, agency fees & commitment fees.

Target Customers

1.Borrowers who require long-term and large quantum loans.

2.Borrowers with strong reputations in their specific industry, whose operational ability as well as financial and technical strength are recognized by most banks.