Global Unified Credit
Product Name
Global Unified Credit
Product Description
Global Unified Credit is an extension of traditional credit products, designed to meet the financing needs of overseas branches of corporate customers. Specifically, Global Unified Credit provides an integrated financing solution for domestic and overseas branches of a corporate customer based on the company’s cross-border development needs, leveraging Bank of China’s extensive network of overseas branches.
Product Features
1. Through a convenient and efficient integrated credit business model, corporate customers can quickly obtain comprehensive and unified credit support from Bank of China worldwide.
2. By utilizing comprehensive credit cooperation between the Bank and enterprises at home and abroad, decision-making steps are reduced, approval procedures are simplified, credit transaction costs are effectively lowered, and financing efficiency is greatly improved.
3. With the support of the Bank, the headquarters of cross-border corporate customers can centrally control the financing needs of their overseas branches, enhancing the management of risks in overseas operations and helping clients manage their financing situation in a unified manner.
Fee Criteria
Fees are based on the principles and rates set forth in Bank of China’s relevant regulations.
Applicable Customers
Global Unified Credit is tailored for large corporate groups committed to international development. These customers are typically well-known in their industry, with strong operational capability, financial strength, and technical expertise, and are key customers supported by Bank of China.
The following table compares the operation modes of applying for loans and using the Global Unified Credit product for overseas branches of the enterprise with the guarantee of the domestic parent company:
Comparison Table: Global Unified Credit vs. Ordinary Loan Mode (with Parent Company’s Guarantee)
| Comparison items | Ordinary mode | Global unified credit | Advantages of global unified credit |
|---|---|---|---|
| Enterprise procedures | External guarantee application materials shall be submitted to the State Administration of Foreign Exchange; Guarantor qualification review materials shall be submitted to overseas lenders; For different projects, the above two tasks need to be completed on a case-by-case basis. |
Sign the Global Unified Credit Agreement with Bank of China’s domestic branches Sign the Guarantee Agreement with Bank of China’s domestic branches |
Simplified workflow |
| Approval from the State Administration of Foreign Exchange | Overseas guarantees need to be submitted for approval on a case-by-case basis. | Submit the total amount for approval. The domestic parent company provides a guarantee to Bank of China’s domestic branches, which in turn guarantees the overseas institution. The overseas institution then directly provides the loan. | Shortened time Improved efficiency |
| Result | There is uncertainty regarding whether the external guarantee will be approved and whether the guarantor’s qualifications will be recognized by the lender, which may affect the financing progress. | The likelihood of the loan being approved is high. | The solution is more likely to be approved |
Application Requirements
1. The group customer shall be a corporate entity registered in the Chinese mainland.
2. The establishment of the overseas enterprise has been approved by the relevant Chinese authorities.
3. The overseas investment foreign exchange registration has been completed with the Chinese foreign exchange management authorities.
4. The overseas investment enterprise has been lawfully registered overseas.
5. The business supported by the overseas credit complies with China’s “Going Global” strategy, Bank of China’s credit policies, and the enterprise’s main business operations.
6. The group shall be a key customer at the Head Office level of Bank of China, with a credit rating of A or above (inclusive).
7. Guarantees recognized by Bank of China shall be provided.
8. Other credit conditions set by Bank of China shall be met.
Processing Procedure
