New York Branch
/
Featured Products
/
Corporate Loans
/
Global Credit Facility

Global Credit Facility

Product Introduction

Global Credit Facility refers to a financing product that facilitates the comprehensive cooperation between a group customer, its cross-border members and China Merchants Bank. China Merchants Bank accepts the credit line application of the group customer's headquarters or major asset management group member, approves the group customer's maximum credit line according to the credit conditions of the group and its members, and grants its credit line to its cross-border members according to three business modes – Onshore Security for Offshore Credit, Offshore Security for Onshore Credit and Global Credit Allocation.

Product Category

  1. 1、Onshore Security for Offshore Credit: A domestic applicant applies for credit line from a domestic branch of China Merchants Bank, takes a member of cross-border group as the guaranteed entity to issue a Standby Letter of Credit. China Merchants Bank New York Branch is the beneficiary of the Standby Letter of Credit, then China Merchants Bank New York Branch provides loans to the cross-border group member.

  2. 2、Offshore Security for Onshore Credit: An overseas applicant applies for credit line from China Merchants Bank New York Branch, takes a cross-border group member as the guaranteed entity to issue a Standby Letter of Credit, a domestic branch of China Merchants Bank is the beneficiary of the Standby Letter of Credit, then the domestic branch of China Merchants Bank provides loans to the cross-border group member.

  3. 3、Global Credit Allocation: A domestic applicant applies for a credit line from a China Merchants Bank's domestic branch, and enables its cross-border group members to use the credit line through China Merchants Bank Global Credit Limit Allocation Letter, and then China Merchants Bank New York Branch provides loans to the cross-border group members.

Product Features

  1. 1、Sharing domestic and overseas resources to realize the "going global" or "coming in" development strategy. The global credit facility business can comprehensively evaluate the group's overall qualification and strength; enable each individual entity at home and abroad to use corporate credit by flexibly using onshore security for offshore credit, offshore security for onshore credit and global credit allocation. This enables the company to share the credit line and financial services within the group system.

  2. 2、Earning additional income from the differences in onshore and offshore market interest rates and exchange rates. Because there are discrepancies between domestic and foreign deposits and loan interest rates and exchange rates, China Merchants Bank New York Branch can use Structured Finance arrangement to help customers realize additional revenue in cross-border investments and financing activities and trades.

  3. 3、 According to different customers’ needs the New York Branch can provide flexible financing methods. Credit facility can be in the form of floating loans, trade financing, etc.

  4. 4、Reducing the group's overall financing costs. Due to the fact that offshore financing costs are generally lower than onshore financing costs, the offshore financing of parent company’s subsidiaries can reduce the financing costs of the entire group.

Target Customers

CMB Head Office’s strategic customers that have cross-border operations or international business development needs, large group entities, and high-quality mid-sized group customers. The members of the cross-border groups will use the loans for specific purposes, and they have a bona fide business background and the loan usage should be related to the overall operation of the group.