Part ⅤCorporate Banking: Loans Cash flow Fixed asset loan Working capital loan Export credit Buyer credit Supplier credit Infrastructure Waste water treatment plant Oil-drilling rig

Fixed interest rate Floating interest rate LIBOR London Inter-bank offered rate SIBOR HIBOR Swap Economic entity Bill discount Syndicated loan

Bank acceptance bill Trade acceptance bill Encash Face value To diversity risks Verifying report on the injection of registered capital Underwriter Short-term loan Medium-term loan

Annual check annual examination Internal return rate The charter of the company The industrial and commercial administrative bureau Technical innovation Permit for loan / card for loan Pre-loan investigation The State industrial policy The undertaking legal person The enterprise legal person

Depreciate Appreciate Devalue revalue Government loan project financing Project financing without recourse Project financing with limited recourse Sound market prospect Ministry of Foreign Trade and Economic Cooperation (MOFTEC)

Overspent Completion guarantee Repayment of the interest and principal Feasibility study report Sponsor of the project Patent To charge a toll Subsidy

Part ⅤCorporate Banking: Loans This section explains different kinds of loans that banks provide to corporate, namely, RMB working capital loans, fixed asset loans, foreign currency loans, project financing, bill discount and syndicated loans.

Section A Working Capital loan Q1. What is RMB Working Capital loan? Q2. What are the characteristics of it? Q3. Is a guarantee necessary for this kind of loan? Q4. Who can apply for it? Q5. What documents should be presented to apply for it?

Q1. What is RMB Working Capital loan? It is a kind of loan used to meet short-term demands of customers in the course of production and operation. Q2. What are the characteristics of it? It has the characteristics of short-term, simple procedures, high revolving nature and low cost. Q3. Is a guarantee necessary for this kind of loan? No, there is credit loan and guaranteed loan.

Q4. Who can apply for it? The borrower should be an enterprise or institutional legal person, or other economic organization or a private industrial and commercial company. Q5. What documents should be presented to apply for it? An application, a cert. of the representative, related resolution of the Board, the company charter, business license, the audited financial statements, a loan card and other documents and cert. required by the bank.

Section B Fixed asset loan Q1. What is the purpose of fixed asset loan? Q2. What are the three categories of fixed asset loan? Q3. Who can be a potential borrower of it? Q4. What are the procedures for application?

Section B Fixed asset loan Skill-building exercise B1 基本建设 技术改造 技术设备 周转性贷款 事业法人 贷款证 信用状况 基本账户 产业政策

基本建设 infrastructure 技术改造 technical innovation 技术设备 technical equipment 周转性贷款 temporary circulating loan 事业法人 an undertaking legal person 贷款证 a Loan Card 信用状况 credit standing 基本账户 a basic account 产业政策 industrial policy

Q1. What is the purpose of fixed asset loan? The purpose is to resolve fund demands of enterprise in their investments in fixed asset. Q2. What are the three categories of fixed asset loan? They are long-term loans, temporary circulating loan and foreign exchange loan.

Q3. Who can be a potential borrower of it? It should be a legal person with a business license and a permit for loan, having good economic returns, a sound credibility , a strong repayment capability. And it should fulfill guarantee, open a basic account with the bank and possess the required proportion amount of the capital.

Q4. What are the procedures for application? The borrower should first submit the required documents, the bank will check all the documents, then the two parties agree on terms and conditions and sign the contracts, after that, the borrower will go through relevant formalities. At last, the funds will be transferred into the borrower’s account.

Section C Foreign Currency Loan Skill-building exercise C2 (P79) Skill-building exercise C1 What can Foreign Currency Loan do Procedures for applying Qualification of the applicant Documents needed for application

Section D Project Financing Q1. What is project financing? Q2. How many forms of project financing? Describe each of them.

Q1. What is project financing? It refers to the practice that the sponsor of a project, which establishes a project company to borrow loans in the name of the company, uses cash flows and revenues of the company to pay back the loans and leaves the asset of the company as the guarantee.

Q2. How many forms of project financing. Two forms Q2. How many forms of project financing? Two forms. One is project financing without recourse. The other is project financing with limited recourse.

Section E Bill Discount (P.84) 票据 commercial instrument 承兑人 acceptor 未到期 undue 承兑汇票 accepted bill 商业承兑汇票 trade acceptance bill 贴现 discount 变现 encash 票面金额 face value 银行垫付的款项 fund advanced by the bank 诚实守信 in good faith

Section F Syndicated Loan 双边贷款 bilateral loan 分散风险 to diversify risks 贷款通则 General Rules on Loans 重点工程 key project 备忘录 memorandum 验资报告 the verifying report on the injection of registered capital

承建商 contractor 贷款额度 the credit lines 融资招标书 bidding documents for financing 牵头行 the lead bank 主承销行 the lead underwriter

questions 项目融资 辛迪加贷款 面额 企业法人 贷前调查 牵头银行 现值 终值 承销商 项目融资 辛迪加贷款 面额 企业法人 贷前调查 牵头银行 现值 终值 承销商 Project financing Syndicated loan face value An enterprise legal person pre-loan investigation the lead bank Present value future value underwriter