Overseas Loan under Domestic Guarantee

By mmuise
Description:

When overseas subsidiaries of Chinese "Go Global" enterprises are in need of funds for production or operation, their parent companies may apply for standby L/C or financing guarantee in favor of Bank of China (Canada), issue by a domestic branch of Bank of China or another commercial bank, enabling the overseas subsidiaries to apply for loan from Bank of China with the standby L/C or financing guarantee as collateral. Chinese invested enterprises in Canada can procure credit support from Bank of China (Canada) through bank guarantees obtained from, and the strengths based on, their parent companies in home country.


Comments on Funding:

Funding takes the form of these combined structure: 1. Loan from a foreign bank: Bank of China (Canada) provides the actual funding.
2. Collateralized financing: Standy L/Cs or guarantees act as collateral, reducing risk for the lender.
3. Parent company guarantee: The parent company's involvement through the guarantees strengthens the loan application.

Deadline: Continuous Intake
Eligibility:

Applicants must be Chinese enterprises with overseas subsidiaries. They can benefit from the 'domestic guarantee and foreign loan' service, allowing them to secure cross-border financing to meet the daily funding needs of their subsidiaries abroad.

Application Steps:

For inquiries, applicants must call BOCC's service hotline: 1-844-669-5566.

Documentation Needed:

No specific documentation has been identified.

Other Things to Note:

Note: This loan product is for Chinese enterprises with overseas subsidiaries.

About the author
mmuise