project loan

I. Functional definition

Project loan refers to the way of financing a specific project, which is a form of international medium and long-term loan and the abbreviation of project loan. Due to inflation and the sharp increase in the cost of new large-scale projects, the investment risks related to these large-scale projects are increasing; In addition, some government or enterprise funds are occupied by ongoing projects, which also makes it impossible to hold new large-scale projects. In order to promote the construction of large-scale projects and explore new ways to use funds, some banks have started this kind of project loan business. This kind of business is different from all kinds of traditional financing business. In addition to the project sponsor, a newly established project unit is needed to raise funds, build and manage the project. In this way, the project sponsor is only the sponsor of the project unit, and its financial resources and reputation are no longer the main guarantee objects of the loan, and the funds are directly provided to the project unit by the lender.

Project loan, also known as project financing, or project financing, is a financing method with high investment return feasibility guaranteed by the project itself, or mortgaged by a third party. The main mortgage forms are: project management right, project property right and special government support (attached documents). The biggest difference between project financing and general loans is that the funds for repayment of loans come from the project itself, not other sources.

Second, product introduction

Project loans are generally medium and long-term loans, and there are also short-term loans for the purpose of temporary turnover of the project. At present, ICBC's project loans are divided into the following types according to the nature of the project, purpose, enterprise nature and different stages of product development and production.

1. Capital construction loan: refers to the loan approved by the competent department of the state for capital construction such as infrastructure, municipal works, service facilities, and new and expanded productive projects.

2. Technical transformation loan: refers to the loan granted for the technical transformation projects of existing enterprises focusing on expanding reproduction.

3. Science and technology development loan: refers to the loan granted for the research and development of new technologies and new products and the transformation or application of scientific and technological achievements to the production field.

4. Commercial outlet loan: refers to the loan that commercial, catering and service enterprises apply to the bank for expanding outlets, improving service facilities and increasing storage area when the self-raised construction funds are insufficient.

In order to fully meet the needs of different customers, the bank has also developed project loans such as temporary revolving loans and M&A loans.

III. Bidding Conditions

A borrower applying for a project loan shall meet the following conditions:

1. Open a basic account or general deposit account with Industrial and Commercial Bank of China. The area where loan certificate management is implemented must hold a loan certificate issued by the People's Bank of China; To apply for loans for foreign exchange projects, you must hold import certificates or registration documents.

2. The project conforms to the national industrial policy, credit policy and bank loan investment.

3. The project has the capital ratio stipulated by the state.

4. Projects that need the approval of relevant government departments must have approval documents.

5. The borrower has good credit standing, strong solvency, perfect management system, and the proportion of foreign equity investment conforms to the relevant provisions of the state.

6. Being able to provide legal and effective guarantee.

In addition to the above conditions, according to the provisions of the General Principles of Loans, the loan object should be an enterprise (business) legal person with People's Republic of China (PRC) nationality (or authority), other economic organizations, individual industrial and commercial households or a natural person with full civil capacity. The borrower shall meet the following basic conditions:

1. Abide by the credit and have the ability to repay the principal and interest on schedule, and the original loan interest payable and the loan due have been paid off;

2. Except for natural persons, the annual inspection procedures shall be handled by the administrative department for industry and commerce (competent authority);

3. basic account or general deposit account has been opened;

4. Unless otherwise stipulated by the State Council, the accumulated amount of foreign equity investment of limited liability companies and joint stock limited companies shall not exceed 50% of their net assets;

5. The asset-liability ratio meets the requirements of the lender;

6. The ratio between the owner's equity of an enterprise legal person applying for medium and long-term loans and the total investment required for new projects shall not be lower than the capital ratio of investment projects stipulated by the state.

In any of the following circumstances, China Industrial and Commercial Bank shall not grant loans:

1. Does not have the qualification and basic conditions of the loan entity;

2 production, operation or investment in products and projects prohibited by the state;

3. Violating the provisions of the State on foreign exchange control;

4. The construction project has not obtained the approval document, which shall be reported to the relevant departments for approval in accordance with state regulations;

5 production, operation or investment projects without the permission of the environmental protection department;

6. In the process of institutional changes such as contracting, leasing, joint venture, merger (merger), cooperation, division, paid transfer of property rights, shareholding system reform, etc., the original loan debt is not paid off, the original loan debt is implemented or the corresponding guarantee is provided;

7. There are other serious illegal business practices.

Four basic conditions of project loan

The project must have capital, and it is the proportion stipulated by the state, and the project conforms to the loan investment of the loan bank and the national industrial and credit policies; If the project needs the approval of relevant departments, the approval documents of relevant departments must be held before applying for loans; If the project is established in an area where loan certificate management is implemented, a loan certificate issued by China People's Bank is required.

1. Project loan refers to the method of financing a specific project. It is a form of international medium-and long-term loans, which is the abbreviation of project loans. Due to inflation and the sharp increase in the cost of new large-scale engineering projects, investment risks are also increasing; In addition, some government or enterprise funds are occupied by ongoing projects, which also makes it impossible to hold new large-scale projects.

Second, in order to promote the construction of large-scale projects and explore new ways to use funds, some banks have started this kind of project loan business. This kind of business is different from all kinds of traditional financing business. In addition to the project sponsor, a newly established project unit is needed to raise funds, build and manage the project. This is also one of its characteristics.

3. Project loan, also known as project financing, or project financing, is a financing method in which the project itself has a relatively high feasibility of return on investment or is secured by a third party mortgage. The main mortgage forms are: project management right, project property right and special government support (attached documents). The biggest difference between project financing and general loans is that the funds for repayment of loans come from the project itself, not other sources.

Fourth, project loans are generally medium and long-term loans, and there are also short-term loans for the purpose of temporary turnover of projects. ICBC's project loans are classified according to project nature, purpose, enterprise nature and different stages of product development and production. There are mainly the following kinds of loans.

In order to fully meet the needs of different customers, the bank also developed project loans such as temporary revolving loans and M&A loans.

project loan

Project loans are loans for specific projects, usually medium and long-term loans. Compared with other loans, project loans have the following characteristics:

1. Projects supported by the loan itself need to be examined and approved according to the examination and approval procedures stipulated by the state. Fixed assets investment projects generally have to go through several approvals, such as project initiation, feasibility study, preliminary design and construction, before they can enter the construction. After the project is completed, the relevant government departments will organize the completion, final accounts, acceptance and other work.

2, fixed assets loans must consider other construction funds. The state stipulates that construction projects must have capital, that is, investors' non-debt funds. The proportion of funds required for projects in different industries to the total investment is different, and bank loans cannot be used as project capital. Usually, the project capital is above 30%.

3. Fixed assets loans have a long term, which is often one-time approval, multiple issuance and loans; The interest rate is fixed every year. The fixed assets loan takes all the capital requirements of the whole project as the evaluation object, and the commitment is approved at one time.

4. Fixed assets loans are one-off. A fixed asset loan can only be used for a fixed asset investment activity of the borrower. When the loan is invested during the project construction, it will be withdrawn from the production activities of the enterprise. After the project is completed and put into operation, the loan will be repaid, and the bank will gradually recover all the loan principal and interest. New fixed assets investment activities need to be re-approved according to regulations.

5. The repayment sources of fixed assets loans are mainly the borrower's after-tax profits, depreciation of fixed assets and other self-owned funds.

Extended data:

Project loan product type:

Project loans are generally medium and long-term loans, and there are also short-term loans for the purpose of temporary turnover of the project. At present, ICBC's project loans are divided into the following types according to the nature of the project, purpose, enterprise nature and different stages of product development and production.

1. Capital construction loan: refers to the loan granted for capital construction such as infrastructure, municipal works, service facilities and new or expanded productive projects approved by the competent department of the state.

2. Technical transformation loan: refers to the loan granted to the technical transformation projects of existing enterprises focusing on connotation expansion and reproduction.

3. Science and technology development loan: refers to the loan used for the research and development of new technologies and new products and the transformation or application of scientific and technological achievements to the production field.

4. Commercial outlet loan: refers to the loan that commercial, catering and service enterprises apply to the bank for the funds needed to expand outlets, improve service facilities and increase storage area when the self-raised construction funds are insufficient.