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Offshore Guarantee backed Onshore Finance
 
Background 
Foreign-invested enterprises (FIEs) and domestic companies listed abroad usually face the dilemma of not being able to shift their ample overseas capital to China, while their domestic associates are starved of RMB capital without financing access to local banks. 

Product Overview 
Based on the security deposit by overseas individual or enterprise as a guarantee, OBD issues CMB domestic branch a stand-by L/C, based on which RMB credit is facilitated to the FIE in China.

Advantages 
1. This service leverages FIEs by the financial strengths of overseas individuals or corporations.
2. The security deposit maintained with OBD remains offshore instead of being shifted into P.R.C. After the RMB loan is repaid, the security deposit can be released and transferred without approval from SAFE. 
3. The deposit is entitled to a preferable interest rate while serving as a financing guarantee. 
4. The financing guarantee and loan procedures are processed by the same bank, thus fast and convenient.
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.