Corporate Account and Deposit Services
Product Introduction
Macau branch provide current account and saving account to customer. Current account is designed to provide day-to-day banking service to customer without paying interest on credit balance, while saving account with paying interest to time deposit.
Accounts may be in Sterling or in such foreign currencies as we may approve.
1. Demand deposits: Non-interest bearing
2. Time deposits: deposit period vary from one month to twelve month . Interest paid upon maturity.
Product Function
To provide corporate clients with deposits, payments and fund transfer services.
Loan
●Bilateral loan
Product Introduction
A bilateral loan is formed between the bank and its individual customer. It is used to provide short-term liquidity and for the purpose to renew and expand fixed assets.
Product functions
1. A Bilateral Loan enjoys a quicker approval process. Overall, a Bilateral Loan has greater flexibility over a Syndicated Loan or debt market financing.
2. Lending terms can be tailored to the individual customer’s needs such as amount and interest period.
3. A Bilateral Loan enjoys greater confidentiality than other forms of financing. All terms are kept confidential between the Bank and the Customer.
Agricultural Bank of China has a team of professionals that can customize a bilateral loan solution for the borrower in a timely manner.
●Syndicated Loan
Product Introduction
A Syndicated Loan is arranged by a single or a group of banks (the arrangers), with other banks joining in as participants in the loan. All lenders are subject to the same loan terms & conditions, and a uniform loan agreement will be signed between the banks and the borrower.
Product Functions
1. The loan amount is large which can meet huge funding needs of the borrower.
2. More efficient means of financing in terms of time and effort spent. After the borrower and arrangers have agreed on the loan terms, the arrangers will conduct the whole syndication for the borrower. All loan administration work will be done by an arranger acting as a facility agent.
3. A Syndicated Loan can be customized via different tranches, containing different structures (Term Loan / Revolving Loan) and currencies.
4. A successful syndicated loan financing will enhance the borrower’s reputation in the loan market, as it is evidence of the borrower’s excellent credit and financial standing.
●Loan under Bank Guarantee
Product introduction
Macau branch provides cross-border facility to the overseas affiliates of the existing customers of ABC domestic branches which provide guarantees (in the form of Standby LC) to cover the underlying transactions. The Standby LC can be provided in RMB or foreign currency, and the facility currency can be the same or different from the guarantee currency. Financing ratio depends on facility currency, with same currency financing ratio of 97%, and different currency financing ratio is determined by currency exchange rate fluctuations of guarantee currency and financing currency (currently up to 90%). The loan term can be determined according to customer demand and the guarantee period, and the loan maturity date in general should be 15 days earlier than the guarantee period.
Product functions
1. This type of financing is mainly for the overseas affiliates of the domestically located companies which have already obtained credit limits from ABC network but are unable to obtain credit locally in the overseas market due to their relatively weak positions.
2. To reduce the borrower's overall financing costs due to the low cost of funds overseas.
3. To facilitate the overall funding operations of the borrower and improve capital efficiency.
4. Easy to operate and efficient.
Trade Finance
●Forfaiting
Product Introduction
Forfaiting is a method of export trade finance, in which ABC itself, or on another's behalf, purchases without recourse the forward drafts accepted by the issuing bank or the committed receivables based on real trade.
Product functions
1. Forfaiting is a method of trade finance without recourse, i.e., you will not be liable for the risks of the debtor's breach of contract once obtaining advances from ABC.
2. Forfaiting is procedurally simple as it does not require additional security since it is based solely on the credibility of the correspondent bank.
3. The cash ABC advances in forfaiting helps improve your financial condition and solvency, and further, increases your financing capability.
●Trade Risk Participation
Product Introduction
Trade Risk Participation refers to the situation where the negotiating bank/confirming bank under L/C, forfaiter, or the beneficiary bank under L/G, in order to reduce the risks they undertake, invite one or more banks to participate in the capital and/or credit risks of the issuing bank/acceptance bank, or counter guarantee bank/guarantee bank. This service, with banks as participants, mainly covers ABC's participation in the capital or credit risks of other banks and ABC's invitation of other banks to participate in the capital or credit risks of ABC.
Product functions
1. To improve the cash flow of the bank.
2. To optimize the risk structure of the trade finance undertaken by the bank and to diversify, transfer and mitigate risks.
●Export Bill Discount
Product Introduction
Export Bill Discount is a kind of financing where customers sell the drafts under an usance L/C accepted by the issuing bank or documentary collection drafts with "Per Aval" by a bank to ABC prior to the maturity of such drafts while ABC pays customers the amount of the face value of the bills minus the discount charges and related fees. Export Bill Discount is different from forfaiting in that the discount bank reserves the right of recourse.
Product functions
1. Customers are able to immediately receive payments and speed up funds turnover. It is procedurally simpler compared with working capital loan.
2. The cash ABC advances helps improve your financial condition and solvency, and further, increases your financing capability.
●Refinancing Service for ABC Branches in China
Product Introduction
Macau branch makes payment on behalf of ABC branches in China for its customers. It is a form of short-term financing with tenor within one year.
Currently, payments handled by Macau branch include remittances, letters of credit, and collection; both trade and non-trade items. Payments can be in RMB and other currencies.
Production functions
1. Help domestic enterprises to obtain low-cost financing from overseas banks in spot time;
2. Help customer to benefit from the appreciation of RMB against foreign currencies.
* Any application would be subject to customer credit line facilities and satisfactory due diligence.