Loans to Overseas Investment Projects (the Loan) refer to loans, either in Renminbi or foreign currencies, provided by the Bank to Chinese enterprises for their overseas investment projects.

By"Overseas Investment Projects", it refers to one or more of the following:

• overseas resources development project;
• overseas processing and trading project that tends to result in increasing export of Made-in-China equipment, technologies and products;
• overseas construction of plants or mills;
• overseas infrastructure building projects;
• overseas research and development centers that are designed to assist domestic manufacturers to upgrade their product creativity and market competitiveness;
• overseas product marketing and sales centers, and post-sales service centers;
• overseas acquisitions, mergers, share-holding and other ventures activated to develop world markets and upgrade competitiveness.

Prospective Borrowers

Prospective borrowers of the Loan are Chinese enterprises or those joint-ventures controlled by Chinese companies that are registered with the regional Administration of Industry and Commerce and its local offices, and accredited with independent legal person status.

Qualifications for Loan Application

1. The borrower should prove financially competent and administratively capable of handling and undertaking investment projects abroad, with working experience of business management in other countries;

2. The borrower has signed a contract for an overseas investment project, which has been approved or authorized by competent government authorities of both the People's Republic of China and the host country or region;

3. The total investment that the borrower invests in the offshore venture project should be no less than USD 1 million, with the portion of self-owned capital amounting to no less than 30% of his total investment;

4. The planned offshore investment project should have ready coordinated and counterpart measures in place, with satisfactory projections of economic returns. And the borrower should be capable of repaying the loan;

5. Repayment guarantee should be provided as acceptable to the Bank;

6. The host country should remain stable both politically and economically, with a welcoming environment for foreign investment;

7. For projects assumed high country risk, an overseas investment insurance should be arranged; and

8. Other requirements that the Bank deems to be of necessity.

Application Procedures

1. The borrower should submit project proposal (including tender proposal) or project feasibility study report to competent government authorities, and present a copy of either to the Bank. Meanwhile, the borrower should submit loan application to the Bank.

2. The competent government authorities approve or carry out initial examination of the proposal submitted, and send to the Bank a duplicate copy of their official reply to the applicant borrower, which is to be used as a reference for the Bank in its dealing with the application and consideration or decision on granting the loan;

3. The Bank issues an opinion report based on which the authorities make their decision; and

4. The Bank examines and approves (or disqualifies as it sees fit) the loan application after its related project feasibility study has been approved by competent government authorities.

Documents and Materials Required for Loan Application

Documents and materials required for applying for the Loan to the Bank include:

1. Loan application;

2. The approval documents of the offshore investment project by competent government authorities of both the People's Republic of China and the host country or region of the project;

3. The agreement(s) of the offshore investment project, corporate charter of the invested joint venture, and other related contracts and arrangements;

4. Feasibility study report on the planned offshore investment project;

5. A letter of intent for covering overseas investment insurance, if such shall be deemed necessary;

6. Profile statements of both the borrower and the guarantor, a copy of the business license of the borrower having passed the annual examination, audited financial statements for the past three years and audited financial statements of the recent period of the current year, and other documents that demonstrate the credit standings and business operations of both the borrower and the guarantor, and other documents concerning the company or the venture registered overseas;

7. Letter of intent for repayment guarantee, or in case of mortgage or pledge, valid certificates of ownership of the property under mortgage or pledge and evaluation reports thereof; and

8. Other documets demanded by the Bank as deemed to be necessary.