Recently, CMB launched a range of ‘Spread Your Wings’ services to expand its financial product portfolio and increase financial support for companies that plan to go listed as part of the effort to boost its second transformation drive.
CMB is reported to grant liquid capital loans to enterprises that intend to go public in tandem with their listing progress. The service is geared to enterprises’ financial status and growth potential, with their own funds as the major source of repayment. Available in a variety of forms such as credit, receivables pledges and IPR pledges, this loan targets companies with strong growth potential and profitability that possess core technologies and match national industry support policies. Under the service model, CMB grants credit loans of up to RMB20 million to companies registered for future listing or who have filed a listing application with the China Securities Regulatory Committee (CSRC), and loans of up to 50 percent of the planned IPO fund.
Compared with conventional credit loans, this loan is better suited to the financial requirements of light-asset and high-growth companies. Benefiting from stronger policy support in terms of approval efficiency and credit resources, the loan enables companies to explore the capital market.