sobota 27. srpna 2011

Food & Biodiesel & Bioethanol


LOAN/CREDIT APPLICATION
June 2011.

Basic Concept

Chinese Government Concessional Loan refers to the medium and long-term, low interest rate Credit extended by the China Bank under the designation of the Chinese Government, to the Government of the Borrowing Country with the nature of official assistance. The China Bank is authorized by the Chinese Government as the sole lender of the Concessional Loan.

Objective

Promote Economic development and improve living standard in developing countries
Boost economic cooperation between developing countries and China.

Resource and Utilization of Funds

China Bank raises Funds in domestic financial market through Bond issuing. Chinese Government subsidizes interest rate difference. The Loan is mainly used to procure mechanical and electronic products, complete sets of equipment, high tech product, services as well as materials from China.

Main Project Sectors

Infrastructure: Such as Energy, Transportation, Telecommunication.

Industrial: Such as Manufacturing, Mining, etc.

Basic Criteria for Project

The Project should be approved by both the Chinese Government and the Government of the borrowing country. The Project should be technically feasible and can generate favorable economic returns.
The Project should have good social benefits Chinese Enterprises should be selected as Contractor/Exporter.
Equipments, materials, technology or services needed for the Project should be procured from China ahead of other countries. In principle, no less than 50% of the procurements shall come from China.

Terms and Conditions of Loan

Loan Amount

In principle, the Loan amount should be no less than RMB 20 million (approximately USD 2.4 million).
Loan Currency

The loan is denominated in Renminbi Yuan.

Borrower

Borrower is normally the Government of the borrowing country represented by Ministry of Finance.

Interest Rate and Maturity Period

Interest Rate and Maturity Period are Fixed by Chinese Government and stipulated in inter-governmental framework Agreement.

Maturity Period

Maturity Period includes Grace Period and Repayment Period.

Grace Period

In Grace Period, the borrower shall pay the interest but no principal.

Availability Period = Drawdown Period

Borrower can make drawdown within availability period. The availability period is included in the grace period and matches the implementation period of the Project.

Interest Payment

Interest is calculated and paid semi-annually. Interest collection dates are fixed on March 21st and September 21st every year.

Principal Repayment

In repayment period, the principal is repaid semi-annually in equal installments. Principal repayment dates are fixed on March 21st and September 21st every year.

Management Fee

Management Fee is calculated on the basis of the total amount of the Loan and paid in One lump sum before the first drawdown

Commitment Fee

Commitment Fee is calculated on the basis of the undrawn amount of the Loan and paid on interest collection dates.



Project Cycle

1. Application

Candidate Project can be proposed to the Chinese Government or China Bank by borrowing country based on development plan and strategy.

2. Documents Required

* Application
* The approval of the Government of the borrowing country
* Feasibility Study Report: Containing the objective, scope and content of the Project and detailed information on technical, economical and social aspects.
* The Commercial Contract or other intention Agreements.
* Brief introductions and financial statements of the Project executing agency and Chinese contractors/exporters.

3. Appraisal

China Bank conducts appraisal at its own discretion.
Reports results to the Chinese Government.
Following aspects are analyzed during appraisal.

* Objective and necessity of the Project
* Technical, financial, economical and social aspects of the Project
* Macro-economic situation and debt servicing ability of the borrowing country
* Management capability and financial strength of executing agency.
* Qualification and performance records of Chinese contractor/exporter.

4. Agreement

Inter-governmental framework Agreement is signed by two Governments, specifying purpose, amount, maturity period and interest rate of the facility Loan Agreement is signed by China Bank and borrower in line with inter-governmental framework Agreement.

5. Implementation and Disbursement

Borrower makes drawdown according to Loan Agreement.
Implementation is essentially the obligation of the borrower and the executing agency China Bank monitors the implementation to ensure the efficient use of Funds.
Borrower reports to China Bank progress of Project, use of funds and provides necessary assistance. After Project is completed, the Borrower sends a completion report to China Bank.

6. Operating and Debt Servicing

Executing Agency has the responsibility to operate the Project. China Bank may monitor the Project and offer advice when it is necessary.
The borrower has the obligation to pay interest and fees and repay the principal according to the provision of Loan Agreement. After a period of operation, China Bank makes Ex-post evaluation on the Project on a case by case basis.

Disbursement Procedures

Concessional Loan Department

Sample Letter of Intent for Applying Soft Loan from China Bank.

To: China Bank

The Government of ________________, hereby confirms the intent to utilize a preferential Buyer's Credit Loan facility in a aggregated maximum amount of up to ___________ million USD to finance the ___________ Project located at _______. major condition for the loan is:

1. Brief introduction of the Project: Please refer to the attached EPC Contract or feasibility study.
2. Construction Period: __________ months.
3. Maturity: 20 years including __ years of grace period, but extendable another five years.
4. Borrower: the Government of __________ represented by Its Ministry of Finance.
5. Sponsor and Project execution body: National Pow Companies or others.
6. Chinese EPC Contractor: here list name and address of the contracted EPC for the Projects.

Signature:



_____________________

Name:
Title:
Ministry of Finance, Federal Government Name
Date: ___________, 2011.


CHINA BANK

Established in 1994 and solely owned by the Central Government, Bank of China is a state policy Bank under the direct leadership of the State Council. Its international Credit ratings are compatible to the national sovereign ratings. At present, the Bank has seven business branches, six domestic representative offices and two overseas representative offices. It has established and maintained correspondent relationship with 140 foreign Banks worldwide.


As an important force in the backup system of foreign trade and economy and a significant component of the financial system, China Bank has developed into a key channel of policy financing for both Chinese export of mechanic and electronic Products, complete set of equipment, and high- and new-tech Products and undertaking of offshore construction Contracts and overseas investment Projects. Meanwhile, the Bank is also the major onlending Bank of Foreign Government Loans and the sole lending Bank for Chinese Government Concessional Loan entrusted by the Chinese Government. The Bank is playing a more and more important role in promoting the development of the open and export-oriented economy of the country.

Mission

The main mandate of the Bank is to implement the state policies in industry, foreign trade and economy and finance to provide policy financial support so as to promote the export of Chinese mechanical and electronic products and high- and new-tech Products, to support Chinese Companies with comparative advantages to "go global" for offshore construction Contracts and overseas investment Projects, to develop and strengthen relations with foreign countries, and to enhance Sino-foreign economic and technological cooperation and exchanges.

Business Scope

* Export Credit (including Export Seller's Credit and Export Buyer's Credit)
* Loans to Overseas Construction Contract and Loans to Overseas Investment Projects
* Chinese Government Concessional Loan
* International Guarantee
* Onlending Loans of foreign Governments and financial institutions
* International and domestic settlement and corporate deposits under the Loan facilities provided by the Bank
* Raising Funds in domestic and international capital markets and money markets
* International inter-Bank loans, organizing or participating in international and domestic syndicated loans
* Renminbi inter-bank borrowing and lending and Bond repurchases
* Foreign exchange dealing and approved risk protection foreign exchange dealing for Client
* Creditworthiness investigation, consultation, appraisal and witness services which are relevant to the Bank's business
* Other business approved or entrusted.


We sincerely hope to establish wide contacts and expand business cooperation with our partners and friends in financial, economic, and trade sectors both at home and abroad.

electronicmoneywire@gmail.com