Product Profile

Types: repurchase and buy-out.

Bills rediscounting under buy-out agreement refers to the transferring of undue discounted commercial bills to CMB through rediscounting.

Bills discounting under repurchase agreement refers to that financial institutions transfer their discounted commercial bills to CMB through rediscounting, but agree to redeem the bills at a given time, in order to get financial funding from CMB. The redemption date should not be later than the expiry date of the commercial bill with the earliest expiry date in the batch. The actual amount of funds is the face value less the interest for the repurchase period, and is provided on-site when the rediscounting is completed. Financial institutions will redeem the commercial bills at face value.

Product Advantages

ü      Simple and convenient procedures.

ü          Reasonable price.

Service Flow:

Buy-out bills discounting

（1）   The two parties agree on the type, amount, and price etc. of the discounted bills.

（2）   CMB examines the credit risk of the acceptor of the bills.

（3）   CMB verifies the authenticity of the bills, and examine the documents.

（4）   The two parties sign agreement, and CMB pays the funds.

Bills rediscounting under repurchase agreement

（1）   The two parties agree on the type, amount, and price etc. of the discounted bills.

（2）   CMB conducts necessary due diligence check and grant credit line to customers.

（3）   CMB verifies the authenticity of the bills, and examine the documents.

（4）   The two parties sign agreement.

（5）   After the two parties sign on the sealed package of the commercial bills, CMB accepts the package, and transfer funds to customers after deducting the rediscounting interest. The funds transfer is effective real time.

（6）At the expiry date, customers transfer to CMB the principal of the bills, and get the bill package back.