Bank Guarantee Convoys Foreign Business

The Bank of China Shandong branch is the first bank to set up foreign guarantee business in the province. By the end of 6, the bank's foreign security guarantee had reached nearly $5 billion in the current year, which is far ahead of the industry in the province.

Sun Zhiwei, general manager of the International Settlement Department of the Shandong branch of the Bank of China, said that in the letter of guarantee business, the bank could provide feasible and controllable business plan for letter of guarantee for the client in line with the state, district laws and local banks' management style of the letter of guarantee. If necessary, we can also intervene in business negotiations ahead of time, and put forward amendments and suggestions from the perspective of banking professionals. We should avoid circumvention and unfavorable clauses in business contracts reasonably and prudently.

The head of a Equipment Manufacturing Company in Dongying has a vivid memory of a guarantee business in 2010. In those days, when the company exported machinery to Middle East customers, based on the trust requirements of customers, it adopted the text provided by the customer to open a letter of guarantee and submitted the materials to the Bank of China Shandong branch. After examination, the bank found that the terms of the guarantee were unfair and implied potential risks. In this regard, the bank promptly communicated with the company, explaining its interests and helping to amend the corresponding provisions. Shortly after the letter of guarantee was opened, the Middle East customer made a claim for compensation because of the deterioration of the cooperation relationship between the buyer and the seller. The Bank of China effectively refused to pay according to the terms of the guarantee, thereby eliminating huge capital losses for the domestic company. Since then, all foreign guarantee businesses have been handed over to the company. Bank of China Handle.

"Whether it is Import and export Trade, overseas project construction or overseas investment and financing projects are inseparable from the support of bank guarantee business. Especially for large projects and investment and financing projects, the demand for bank guarantee is even higher. " Sun Zhiwei said.

In 2012, a large enterprise in the province intended to buy offshore yacht companies in the sea. It is urgent for banks to provide professional advice and financing support in the process of mergers and acquisitions. The Shandong branch of the Bank of China has carefully designed the product plan for its guarantee letter, and won it in the fierce competition of the same industry. It has opened a total of $530 million worth of foreign guarantee for the project, and has successfully completed the merger with the enterprise. Through the implementation of the scheme, the financial cost of the behavior enterprises is nearly 10 million yuan.

　　 Contract for overseas contracted construction After signing the contract successfully, the financial director of a construction company in Shandong was worried. It turns out that the time limit for the opening of a foreign guarantee letter is close to commercial contracts. However, due to the intensive project in recent years, the credit limit of each financial institution occupies nearly the upper limit, which is unable to meet the requirements of the letter of guarantee, and is about to face the risk of breach of contract.

After receiving the information, the international settlement business personnel of the Shandong branch of the Bank of China visited the top level of the enterprise and brought the business cooperation plan with the policy advantage of the exclusive undertaking of the Ministry of finance's "special venture capital risk guarantee for foreign contracted projects". The company applied for a special fund of 30 million US dollars and issued the advance guarantee letter as scheduled. Subsequently, the overseas owner's prepayment funds were allocated and the project started smoothly.

On the day of May, near midnight, the international settlement officers of the Shandong branch of the Bank of China successfully completed the unconditional guarantee letter of a sum of up to US $276 million for a large group company in Qingdao through the successful docking with the Bank of China New York branch.

As the world's financial and regulatory policies are quite different, in the course of foreign guarantee business, the Bank of China understands the way of international trade and finance. Because of the changes in time and time and customers, it relies on the advantages of general branches and domestic and foreign banks to set up solutions for all kinds of problems encountered by enterprises in the business process, so as to effectively meet the diversified needs of enterprises and help enterprises to get twice the result with half the effort in overseas market expansion.