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Financial consultation on structured financing
 
1. Overview

Structured financing uses a special purpose entity (SPE) or special purpose vehicle (SPV) to strip off specific assets for future cash flows to obtain financing based on the SPE or SPV. This financing method can also be understood as the way of swapping specific assets with cash assets in the balance sheet (known as an‘assets swap’) to increase the amount of productive assets, mostly liquid assets at a fixed liability-asset ratio.

2. Target customers

This financial product targets companies with a strong industry position, robust business performance, and a strong potential for sustainable growth and helps them to implement a mature corporate structure, standard management practices and investment plans for projects with an expected high return on investment (ROI). These companies can provide sufficient high-quality mortgages and pledges or beneficial interests without any legal issues.

3. Procedure

At the request of customers, CMB, as the organizer of project-related transactions, provides a series of value-added specialist services in terms of organization, coordination and supervision for the issuance of commercial paper. These services include designing fund-raising plans that enable customers to prepare application documents, select intermediary agencies and disclose information.

4. Service description

As the transaction organizer acting on behalf of the customer, CMB helps set up and manage an intermediary service team; negotiates with intermediary agencies to minimize financing costs; plans the issuance of asset-backed securities; helps the customer plan and qualify for better credit and communicates with regulatory authorities.

In addition to the services described above, CMB offers guarantees and project loans for qualified customers and assists customers to find institutional investors.

5. CMB's advantages

CMB’s extensive sales network and strong marketing expertise guarantee the source and quality of projects;

CMB’s industry-leading portfolio of financial products facilitate fund-raising for trust plans;

With a controllable risk and a high market demand, structured financing yields higher returns than other financial products. Powered by its industry-leading financial product sales system, CMB can achieve sales targets on short notice and maximize both returns for customers and a high-spread income for itself.

Note:
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.