1. 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

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

3. 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

4. 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

5. 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)

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

7. 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.

8. 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?

9. 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.

10. 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.

11. 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?

12. 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

13. 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

14. 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.

15. 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.

16. 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.

17. 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

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

19. 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.

20. 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.

21. 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

22. 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

23. 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

24. 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