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Syndicated Loan

Introduction

The syndicated loan is a financing method evolved from bilateral loan. Under the arrangement of syndicated loan, one bank or several banks (as the arrangers) organize other banks to grant loans to the same borrower under one loan agreement according to agreed terms.

Syndicated loans have the following features:

Huge amount, long term; fewer restriction on the use of proceeds (compared with government loans and export credit); easier management (compared with loans borrowed separately from different banks); less pressure on banks; diversified risk. As for the borrower, syndicated loans provide large amounts of loans with longer term and easy operation management (only need to contact with the agent bank).

Eligible Applicants

1.According to the national industrial policies and economic development plan of the local government, syndicated loans are focused on energy, transportation, hi-tech industries and regional key projects.

2.Eligible applicants include corporations incorporated within China's territory or other economic organizations approved by the banks (referred to as the borrower) that comply with General Rules on Loans and Interim Regulation on Syndicated Loans.

Application Materials

The requirement is the same as for either working capital loan or term loan.

Application Procedures:

1.The client manager of BANK OF CHINA (HUNGARY) CLOSE LTD. pays attention to client's demand for financing.

2.The bank receives the client's loan information/bidding documents for financing.
3.The bank discusses the loan provisions and financing structure with the client, and draft the related documents.

4.BANK OF CHINA (HUNGARY) CLOSE LTD. is duly designated as the lead bank/underwriter for the syndicated loan.

5.BANK OF CHINA (HUNGARY) CLOSE LTD. confirms the amount of credit.

6.The syndicate timetable, strategy and make-up are defined.

7.The loan memorandum and invitation to the syndicate are prepared, related financial institutions are invited.

8.The participating banks make commitment on their subscription.

9.The credit lines of the participating banks are finalized.

10. All parties reach consensus on the loan agreement and guarantee agreement.

11. The agreement is signed.

12. The agent bank is responsible for the routine work.

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