The offshore back-to-back letter of credit is designed for a company group with a business model of an offshore company contracting with a supplier who is outside China for delivery to a company in China (the final purchaser), who is associated with the offshore company.

First, the final purchaser has to be granted a credit line by CMB (any domestic branch if necessary). Upon receipt a letter of credit (master LC), in the offshore company' s favor issued by CMB within the credit limit, on behalf of the final purchaser, you (the offshore company) can take the master LC as collateral to approach us for the issue of a letter of credit (back-to-back LC), in favor of the overseas supplier. However, the terms and conditions on which the back-to-back LC will be issued are based on the master LC. The product lets you share the synergy within your group, for example, sharing the credit line, getting the benefit from overseas tax policy, etc.