1. Financial consultation
This service is designed for CMB to recommend qualified SMEs to private equity funds. The bank provides SMEs that plan to go public with value-added services such as reorganization and restructuring. As well as extending its range of financial services for the capital market, these services help CMB build a high-value customer base.
2. Combination of PE and banking services
Under this model, CMB forms strategic alliances with private equity firms to indirectly invest in SMEs. Normally, CMB enters into an agreement with private equity firms. Under this agreement, CMB grants a credit line to these firms. Within the given credit limit, the bank extends loans directly to fund-strapped SMEs invested in by firms without additional review.
By leveraging the credit policy for SMEs, this product enables CMB to find a new customer group and reduce credit risks with private equity firms acting as the guarantor. In addition, this financial vehicle facilitates loans to SMEs and strongly boosts their development.
3. Option loans
As a marriage of its business and the capital market, CMB offers option loans to expand the scope of choice for private equity firms and thus to diversify its partnerships with these firms and its source of yields. The product makes it easier for SMEs to obtain bank loans and equity investment from private equity firms to boost their business potential. This enables SMEs to obtain early-stage funding and improve their corporate governance structure.
All the contents stated above are for your reference only. Please consult the local branch of China Merchants Bank for further information. China Merchants Bank reserves the ultimate right of interpretation for the contents in this page.