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Special Financing Products

With its precise and efficient business style, its business concept of professionalism, dedication and innovation and a professional team that has a strong background in financial and industrial sectors, ICBC provides comprehensive financial solutions to solve the financial needs of "Going Global" Chinese companies and boasts obvious advantages in business efficiency, professionalism, diversity of products and the innovation of services and products. Supporting the "Going Global" effort of Chinese companies is an important measure adopted by ICBC to carry out China's development strategy and serve the real economy. ICBC actively motivated domestic and overseas institutions to provide such core products as export credit, resource-backed structured financing, cross-border M&A financing, global syndication, overseas project financing, overseas contract financing, Overseas Loan under Domestic Guarantee, cross-border RMB financing and agriculture financing, its global business network and comprehensive financial services such as commercial banking and investment banking to follow the "Going Global" Chinese companies in over 50 countries and regions across the five continents. Main Products include:

☆ Export Credit

1. Export buyer's credit?
Definition: It refers to the medium and long-term loans provided by ICBC to an overseas importer, or a bank or government organization in the country where the overseas importer is located to purchase the goods or services exported by China on the condition that China Export & Credit Insurance Corporation provides export credit insurance which covers political insurance and commercial insurance and the coverage ratio is no less than 95% of the contract amount.

2. Re-financing of deferred export contract
Definition: It refers to the buyout of the medium and long-term receivables under the export contract by ICBC without recourse on the condition that China Export & Credit Insurance Corporation provides export credit insurance which covers political insurance and commercial insurance and the coverage ratio is no less than 95% of the contract amount. Regardless of whether the exporter has purchased seller's credit insurance, as long as the exporter has performed all the obligations under the business contract, the debts can be transferred to ICBC to alleviate the exporter's funding pressure on the condition that China Export & Credit Insurance Corporation provides export credit insurance.

3. Overseas accounts receivable financing
Definition: Overseas accounts receivable financing means that Chinese exporters or contractors sell out to ICBC the overseas accounts receivable that can be directly accepted by ICBC or the overseas accounts receivable covered by Sinosure. It can reduce the exporter's liability rate and exchange rate risk. By the obligations of exporter, it can be classified into “with recourse”, “without recourse” and “partial recourse”.

4. International commercial loan
Definition: International commercial loan refers to the medium and long-term financing offered to overseas enterprises, banks or governments that have a good credit rating for them to make payment for mechanical and electrical products or projects of Chinese enterprises as borrowers or guarantors.

It is generally used in combination with export buyer’s credit to make repayment for business contract and pay interest and premium during the construction period.

The borrowers are located in emerging developing countries with relatively high sovereign rating and stable political and economic environment; the sovereign rating is or is equivalent to above BB- of S&P/Moody's long-term foreign currency credit rating.

☆ Resource-backed Structured Financing

1.Definition: Resource-backed structured financing is provided to an overseas borrower based on the long-term resource product purchase and sale contract signed between the borrower and a domestic enterprise, with the borrower’s future sales revenue under the purchase and sale contract as a main source of repayment.

2.Scope of application: The borrower or its parent company is an international energy producer with abundant resource reserves and large sales volume; The overseas counterparty under the borrower’s sale contract is a major domestic resource purchaser; The contracting project of the borrower or any of its subsidiaries is contracted by a Chinese company (if possible).

3.Features: It can meet the borrower's large financing needs for the middle and short run;

The rights and interests of the long-term agreement on resources sold to China are the main guarantee; The remaining funds after deduction of loan principal and interest can flow back to the exporter without any impact on the company's day-to-day capital operation; It can help domestic enterprises to obtain resources or contract projects. The loans can be flexibly used for general corporate purposes or construction of project undertaken by a Chinese-funded enterprise; ICBC outlets distributed worldwide can be utilized for reasonable arrangements on taxation, legal issues and commercial transactions in connection with loans; It can be used in combination with overseas investment project financing and overseas equity capital investment loans; It is widely applicable to various mineral resources including oil, gas and coal, and etc.

☆. Overseas M&A Financing

1. Definition: Overseas M&A loan refers to the loan granted for meeting the needs of an acquirer for paying transaction price in a cross-border M&A transaction, with the subsequent cash flows of the acquired enterprise, consolidated income or other legal income of the acquirer as the source of repayment.

2. Scope of application: Chinese enterprises which conduct strategic M&A activities relating to industries in foreign countries, including enterprise integration and resource integration; Enterprises with highlighted main businesses, sound operation, competitive advantages and favorable development potential in an industry or some regions; With high industrial or strategic relevance to the target enterprises, acquirers, through M&A, can obtain strategic resources of the target enterprises to improve their core competitiveness, including R&D capabilities, key technologies and processes, trademarks, licenses, supply or distribution network; If a legal M&A transaction concerns national industrial policies, industry access, antitrust and transfer of state-owned assets, approval from relevant authorities should have been or would be obtained in accordance with applicable laws, regulations and policy requirements.

☆ Global Syndication

1. Definition: Global syndication is a way of providing financing to the same borrower in accordance with the agreed terms and conditions under the same loan agreement by a banking syndicate led by one bank or several banks that are approved to engage in loan operations with the participation of several banking and non-banking financial institutions.

2. Scope of application: M&A financing, resource project financing, infrastructure project financing, and corporate financing etc. Companies with strong comprehensive strength and high awareness in the industry; Companies with favorable financial position, liquidity and strong profitability; Companies with long-term and large-amount funding demands.

3. Features: Such loans, with large amount and long term, are generally used for industries including transport, petrochemical, telecommunication and electricity; With less time and effort, the lead bank and the agency bank make arrangements at different stages; Diversified forms of syndicated loans are available; It can help the borrower to build a good market image.

☆ Overseas Project Financing (including overseas project contracting)

1. Definition: It is the credit support based on limited recourse or without recourse provided by ICBC in respect of overseas resource investment project, which takes the proceeds from resource development project as credit base, with the adoption of insurance, third-party guarantee and credit enhancement measures for financing.

2. Scope of application: Large infrastructure projects with huge investment and long-term stable income such as electricity, water conservancy, urban water supply and sewage treatment plant as well as roads and bridges, tunnels, railways and airports.

☆. Cross-border RMB Financing

1. Definition: It is an RMB loan provided by domestic financial institutions to overseas borrowers that have certain RMB income sources or repayment ability to meet their RMB financing needs in cross-border operations. The loan is used to finance their overseas projects or cross-border trade activities.

2. Scope of application: Cross-border RMB financing needs arising from the bilateral trade activities of Chinese or foreign companies, including but not limited to bilateral import and export of goods, overseas investment and M&A of Chinese companies, overseas project contracting and export credit;The borrower is in general an overseas company or an overseas platform of a Chinese company and the borrower has RMB income sources or repayment ability that matches the financing; The purpose of the loan is real, appropriate and legal, the provisions of the trade contract are complete and the contract supports settlement in RMB. The loan funds will not be directly or indirectly transferred back to China in the form of lending, equity investment or securities investment.

3. Features: It can meet the needs of Chinese companies' "Going Global" projects for RMB funds and provide financing in the same currency for the projects that have RMB income sources to evade exchange rate fluctuations; The loan can be use for multiple purposes and supports the RMB financing needs in connection with bilateral economic and trade activities; ICBC outlets distributed worldwide can be utilized for reasonable arrangements on taxation, legal issues and commercial transactions in connection with loans; The loan covers a broad range of industries, is applicable to the bilateral import and export of goods, and supports the financing needs of oil, gas, coal, road, port and metal mineral projects abroad.

☆ Agriculture Financing

1.Definition: It is a financing facility provided by the ICBC to the borrower to support its engagement in farming, forestry, animal husbandry, sideline operation and fishery and the investment, trade, development and construction of the related fields abroad based on the borrower's credit standing and the income generated by the projects.

2. Scope of application: Acquisition of agricultural land, including farming land and ranches;

Planting of agricultural products, including grain crops and economic crops; Forestry development and wood processing; Fishery, including fishing and aquaculture; Livestock raising and dairy industry; Trade in agricultural materials (including agricultural machines, pesticide and chemical fertilizer); Construction of agriculture-related processing companies; Construction of farm irrigation, water conservancy and warehouse and other agriculture-related infrastructures.

☆ Cross-border Financial Leasing

1. Definition: It is an innovative financial product provided by the ICBC to the borrower's lease of import and export equipment or overseas leasing projects based on the cash flow of the lease contract and the credit enhancement measures such as repurchase, insurance, mortgage, pledge and guarantee offered by the lease company.

2. Scope of application: Special purpose vehicles and subsidiaries set up by domestic lease companies abroad; Financial leasing projects and operating leasing projects abroad; Import and export lease of oil rigs, oil and gas tanks and pipelines, satellites, locomotives, medical equipment, engineering machinery and other large equipment.

3. Features: It can meet the Chinese companies' funding needs for purchasing equipment in the "Going Global" projects; It can support the domestic companies' import and export of equipment;

ICBC flexibly arranges the trading structure through leasing to reduce the customer's liability rate and reduce tax cost.

☆ The above is for reference only. Details refer to the rules drawn up by ICBC Phnom Penh Branch. To save your time, please consult ICBC Phnom Penh Branch before applying for the service.