Name

Secured Loan

Introduction

When overseas subsidiaries of Chinese "Go Global" enterprises are in need of funds for production or operation, their parent companies can apply for standby L/C or financing guarantee in favor of Bank of China Stockholm Branch, 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 guarantee.

Features

1. The service can meet the financing demand of overseas subsidiaries of Chinese enterprises. Nowadays, while more strong Chinese enterprises start their investment and development abroad, their overseas subsidiaries are normally not strong enough to meet the direct credit extension conditions of Bank of China Stockholm Branch, therefore theses enterprises can take advantage of the "secured loan" service to obtain cross-border financing, meeting the daily fund demand of their overseas subsidiaries.

2. With the standby L/C or financing guarantee issued by domestic bank in China, the approval processes of loan are more rapid and simple to meet the timeliness demand for customers' financing.

Charges

The charges are subject to the charging principle and rate provided in relevant rules of Bank of China.

Target Customers

Applicable to Chinese "Go Global" enterprises whose overseas subsidiaries (or affiliated companies) are in need of loan.

Application Qualifications

1. The borrower shall be a legally registered overseas enterprise legal person or other economic organization qualified for loan application;

2. The borrower shall have a corporate account in Bank of China Stockholm Branch;

3. The borrower shall have secured a legal and valid standby L/C or financing guarantee from domestic parent (controlling) company;

4. The borrowing shall be compliant with local regulatory rules and loan policies of Bank of China Head Office and Stockholm Branch.

Required Documents

1. Loan application;

2. Certificate of enterprise legal representative or power of attorney, board of directors resolution and the articles of association;

3. Valid business license of the borrower (copy);

4. Audited financial statements of the latest three years and the newest financial statement of the borrower;

5. Other documents or information needed by the Bank of China.

Procedure

1. The borrower submits a loan application and related application documents to the Branch;

2. The Branch reviews the borrowers' application materials;

3. Bank of China Stockholm Branch will assist the borrower and its parent (controlling) company in contacting with relevant domestic branch of Bank of China or other commercial bank, and issue the letter of loan intention;

4. After receiving and examining the standby L/C or financing guarantee issued by a domestic bank in favor of Bank of China Stockholm Branch, the Branch will sign the official "Loan Agreement" with the borrower;

5. The borrower opens a loan account in Bank of China Stockholm Branch to obtain the loan.