Risk Participation
Risk participation means that Bank of China Sydney Branch, as a risk participating bank, bears parts or all of the credit risks of the obligor under international settlement and trade finance, on a funded or unfunded basis. Risk participation is an important product to strengthen cooperation.
According to whether Bank of China Sydney Branch provides funding, we have funded risk participation and unfunded risk participation. Funded risk participation means that Bank of China Sydney Branch funds the deal in risk participation; unfunded risk participation means that Bank of China Sydney Branch does not provide funding, but in case obligor fails to fulfill payment obligations at maturity, Bank of China Sydney Branch shall make corresponding payments for creditor’s rights in accordance with its pro rata share.
FEATURES
•Solution to the problem of lack of credit line.
•Assistance in expanding business in Chinese market.
•Improvement of risk coverage capacity.
•Maintenance of a good relationship between you and your obligor through the undisclosed risk participation.
