A. Working Capital Loan
Working capital loans are provided to companies in order to fund day-to-day operational expenses by considering future profits as the major source of repayment. This loan is available in various forms, including a revolving loan facility where companies may drawdown, repay and re-draw loans advanced to it.
B. Syndicated Loan
A syndicated loan refers to a loan or other credit facility provided by a syndicated group constituted by multiple qualified banks or other financial institutions to the same borrower based on the same loan conditions and agreement. ICBC may offer a yndicated loan as a mandated lead arranger or a participant.
C. Vessel Financing
i. Vessel Mortgage Financing
Long-term loans may be extended to the ship owner with the ship being mortgaged to ICBC as security for the loan, given that:
a) The ship is currently operating with clear property rights
b) The ship has no prior mortgage or default
c) The ship has passed all tests and has obtained operating licenses in compliance with all requirements and insurance underwriting requirements where ICBC is the main beneficiary listed in the insurance.
ii. Financial lease
A ship finance lease is a commercial arrangement where the lessor purchases the ship selected by the lessee and retains ownership of the ship, while renting the ship to the lessee for a specified period of time. When the lease expires, the lessor will sell the ship to the lessee and transfer the ownership of the ship, free of charge or at the residual value. We provide the lessor with a loan to purchase the ship in exchange for the transfer of rights to the mortgage, insurance/rental contract, or provide the lessee with a loan to purchase the ship through structured finance.
iii. Operating lease
A ship operating lease is a lease in which the lessor rents the ship to the lessee and the lessee is responsible for the maintenance and upkeep of the ship. During the lease period, the lessee must pay a rental fee as specified in the lease contract. Once the lease expires, the lessee may extend the lease period or may purchase the ship at its market value or at a previously agreed upon price. We provide ship leasing companies with loans to purchase ships in exchange for the transfer of rights to the mortgage, insurance/rental contract, or provide shipping companies with off-balance-sheet financing services.
iv. Sale-and-Leaseback Financing
Ship owners or shipping companies may sell their ship to a leasing company or other third party in order to improve their financial ratio or reduce their tax burden and then lease it back. Our bank helps arrange sale-and-leaseback transactions and provides necessary financing services.
D. Aircraft Financing
i. Pre-delivery financing
If pre-delivery payments are required when an airline orders aircrafts from a manufacturer, we can provide loans or letter of guarantee for payments in exchange for collateral.
ii. Aircraft Mortgage Financing
Mid to long-term loans can be extended to the airlines with the aircraft being mortgaged to our bank, given that:
a) The aircraft has been manufactured and has clear property rights
b) The aircraft has no prior mortgage or default
c) The aircraft has completed all tests and has obtained all operating licenses in compliance with all airworthiness requirements and insurance underwriting requirements, where ICBC is the main beneficiary listed in the insurance
iii. Financial Lease
In an aircraft finance lease, the risk and rewards incidental to the ownership of the aircraft is transferred to the airlines but not the actual ownership. We provide the lessor with a loan to purchase the aircraft through lease financing in exchange for the transfer of rights to the mortgage, insurance/rental contract, or provide the airline with a loan to purchase a new aircraft through structured finance.
iv. Operating Lease
In an aircraft operating lease, the lessor retains ownership of the aircraft, as well as the substantial risks and rewards of ownership. Our bank provides loans and refinancing options for airlines to purchase aircrafts in exchange for the transfer of rights to the mortgage, insurance/rental contract and also offers off-balance-sheet financing services.
v. Sale-and-Leaseback Financing
Airlines or aircraft rental companies may sell their aircraft to a third party in order to improve their financial ratio or reduce their tax burden and then lease it back. Our bank helps arrange sale-and-leaseback transactions for airlines and aircraft leasing companies and provides necessary financing services.
vi. Leasing guarantee and counter guarantee
If the airline does not have a credit standing that is acceptable to the lessor or the bank providing financing, we are able to provide guarantee for the airlines (including Standby L/C, Revolving L/C), as well as provide a counter guarantee for the banks that have already issued a guarantee for the airlines.
E. Project Financing
Project financing refers to loans that we extend to borrowers for investment in the construction, expansion, renovation, development and purchase of infrastructure such as roads, ports, and bridges, and large-scale fixed assets, such as thermal and renewable energy plants. ICBC generally grants mid to long-term project loans and also short-term loans (bridge loans) for temporary turnaround requirements. We also issue bank acceptances under the projects and non-financing guarantees, as well as trade financing for both domestic and international transactions.
F. Real Estate Development Loan
Real estate development loans refer to loans that we extend to borrowers to finance real estate projects, such as housing, and corresponding facility constructions, such as hotels and retail centers.
G. China Guarantee – Korea (Overseas) Loan
If the Chinese affiliate of a Korea-based company issues a bank guarantee or a Standby L/C of the ICBC China Branch to the ICBC Seoul Branch, a loan will be extended to the Korean-based company.
H. Korea Guarantee – China (Overseas) Loan
If the Korean-based company of a Chinese affiliate issues a bank guarantee or a Standby L/C of the ICBC Seoul Branch to the ICBC China Branch that is associated with the Chinese affiliate, a loan will be extended to the Chinese affiliate.
I. Loans for Korean Subsidiary Companies in China
If the Korean-based company of a Chinese affiliate issues a bank guarantee or a Standby L/C of the ICBC China Branch to the ICBC Seoul Branch, a loan will be extended to the Chinese-based subsidiary company.
J. Other Corporate Loans
*All information contained in this page is intended for reference only. Please check with your local ICBC branch for any detailed product information. ICBC reserves all rights for the content in this website.