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Onshore Security for Offshore Credit

Onshore Security for Offshore Credit

Product Introduction

A domestic branch of China Merchants Bank issues a Standby Letter of Credit designating China Merchants Bank New York Branch as the beneficiary of the Standby Letter of Credit according to customer’s application, based on either a deposit by the customer at the domestic branch or a deduction of the customer’s credit line. Then China Merchants Bank New York Branch will provide RMB or foreign currency financing to the applicant’s foreign affiliates (or the applicant itself) basing on the issued Standby Letter of Credit.

Product Features

  1. 1、We can assists “Going Global” enterprises to obtain overseas financing. There enterprises can use the capital or credit line of its onshore companies to provide support for its offshore affiliated enterprises. We also help enterprises solve financing obstacles after they go global.

  2. 2、We make full use of the advantages of China Merchants Bank’s cross-border joint businesses, and provide low-cost financing for enterprises in order for these enterprises to reduce their financing costs.

Target Customers

It is generally applicable to large, mid-sized corporate customers that have offshore companies, or group customers that have cross-border members.

Business Procedures

  1. 1、Domestic enterprises shall apply for the issuance of a Standby Letter of Credit from a domestic branch of China Merchants Bank by means of guarantee deposit or credit line deduction.

  2. 2、The domestic branch of China Merchants Bank issues a Standby Letter of Credit designating China Merchants Bank New York Branch as the beneficiary.

  3. 3、China Merchants Bank New York Branch provides loans for the guaranteed entity according to the Standby Letter of Credit issued by the domestic branch of China Merchants Bank.