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Bilateral and Syndicated Loan

Product Name

Bilateral Loan

Introduction

Bilateral Loan is a form of loan business in which one bank provides loans for one borrower for working capital, CAPEX or General Corporate Purpose.

Feature

The major advantage of bilateral loan is that bank offers relatively independent, flexible and customized scheme for borrower.

Product Name

Syndicated Loan

Introduction

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 loan business on behalf of the syndicate members.

Features

1.Large amount and long term. It can meet borrowers' demand for funds of long term and large amount. It is generally used for new projects loans, large equipment leasing and enterprises' M&A financing in transportation, petrochemical, telecommunication, power and other industries.

2.Less time and effort for financing. It is usually the responsibility of the arranger for doing the preparation work of establishing the syndicate after the borrower and the arranger has agreed on loan terms by negotiation. During implementation of the loans, the borrower does not need to face all members of the syndicate, and relevant withdrawal, repayment of principal with interest and other management work related to the loans shall be fulfilled by the agency bank.

3.Diversified approaches to syndicated loans. The same loan syndications can include many forms of loans, such as fixed-term loans, revolving loans, standby L/C line on requirements of the borrower. Meanwhile, the borrower can also choose RMB, USD, EUR, GBP and other currency or currency portfolio, if needed.

4.It can help borrowers establish a good market image. Successful establishment of the syndicate comes from the participants' full recognition of the borrower's financial and operational performance, by which the borrower can build up their reputation.

Common features

Currency

Both Bilateral Loan and Syndicated Loan mainly adopt USD, EUR. Besides it, RMB, GBP and other currencies are also available. Multiple currencies can be used in a single loan on demand of the borrower.

Term

Short term: 1 to 3 years

Medium term: 3 to 5 years

Longterm: more than 5 years

Interest Rate

The price of syndicated loan is composed of loan interest and fees.

Lending interest rate shall be set, according to different borrowers, in line with lending interest rate policies of the People's Bank of China, lending interest rate regulations of Bank of China and provisions of the syndicated loan contracts.

Charges

Charges mainly include arrangement fee, underwriting fee, agency fee, commitment fee.

Target Customers

1.Borrowers who require long-term and large-amount loan.

2.Borrowers with high reputation in the industry, whose operation ability as well as financial and technical strength are recognized by most banks.

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