Corporate Banking

Financing Models

(I) Financing for the Production Increase of Energy-conserving and Emission-reducing Equipment Manufacturer Production

1. Model Definition

A combined financing model that provides energy conservation equipment manufacturer with both short term and mid to long term financing.

2. Target Customers

Energy conservation and emission reduction equipment manufacturer.

3. Characteristics

A combined financing model that provides energy conservation and emission reduction equipment manufacturer with fixed assets loan, current capital loan or project loan. When the market demand and orders are increasing, it can provide enterprises with current capital loan to improve production, or fixed assets loan and project loan to expand and build new production lines.

(II) Financing for Utilities Service Supplier

1. Model Definition

A combined financing model that provides urban utilities service supplier with fixed assets loan such as project construction, and current capital loan such as for procurement and other stages. The utilities services include gas supply, heat supply etc.

2. Target Customers

Urban utilities service supplier engaged in energy conservation and environmental protection.

3. Characteristics

The Bank provides utilities service supplier with combined financing service, including fixed assets loan for project construction, current capital loan for procurement and financial lease and franchise rights pledged financing. The common projects include gas supply, heat supply etc.

(III) Financing for Franchised Projects

1. Model Definition

A business model that provides enterprises participating paid service of public utility by franchise with combined financing for its construction and operation of energy conservation and environmental protection projects and infrastructure projects by project financing, financial lease and other methods.

2. Target Customers

Enterprises participating paid service of public utility in energy conservation and environmental protection field by franchise.

3. Characteristics

Provide combined financing for its construction and operation of energy conservation and environmental protection projects by project financing, financial lease and other methods; guaranteed by the pledge of franchise right or right of charge on projects; the cash flow from the operation of project will be the main source of repayment. The common projects include water supply, gas supply, central heating, sewage treatment and garbage disposal etc.

(IV) Financing for Energy Service Company (ESCO)

1. Model Definition

A combined financing model that provides ESCO with pledge by usufruct of EPC projects, pledge by usufruct of planned projects or mortgage by equipments and constructing projects.

2. Target Customers

ESCO.

3. Characteristics

Pledged with future usufruct of completed or planned EPC projects or mortgaged with equipments and constructing projects, ESCO applies diversified and combined financing service includes credit, lease, trust and debt financing tools. It helps ESCO to solve guarantee difficulties by innovative design of pledge with future usufruct of projects. It also provides ESCO with comprehensive financial service such as financial consulting, cash management, shareholding reform and private placement financing.

(V) Financing for Financing Lease Company

1. Model Definition

A business model for financing lease company to apply for financing pledged with lease payment receivable from its energy conservation and environmental protection projects.

2. Target Customers

Financing lease company.

3. Characteristics

Guaranteed by lease payment receivable from energy conservation and environmental protection projects, it provides financing to financing lease company for its lease business in energy conservation and environmental protection field. It helps lease company to expand capital source and indirectly support the lessee to develop in energy conservation and emission reduction field.

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