Shanghai Pudong Development Bank-Loan for Capital Increase by the Chinese Party of the Sino-Foreign Joint-Venture or Cooperative Company

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Loan for Capital Increase by the Chinese Party of the Sino-Foreign Joint-Venture or Cooperative Company

Loan for capital increase by the Chinese party of the sino-foreign joint-venture or cooperative company (hereinafter referred to as loan for capital increase of the Chinese party) means the RMB or foreign currency medium or long term loan our bank offers to the Chinese investors of the joint-venture company or sino-foreign cooperative company during its increase of registered capital.

Subject and Conditions of the Loan

Your company is registered under approval of related state authorities. You are an independent accounting unit with qualification of enterprise legal entity. Your company has already established joint-venture or sino-foreign cooperative company with foreign company (including company from Hong Kong or Macau).
Besides, your company should also meet the following requirements while applying for capital increase loan:

Your company has good creditability.
Your product is market-oriented. Your company has relatively good business performance and is continuously making profit for the past two years. In addition, your company is capable for continuous operation and profit earning.
The foreign investor should be well-known international company or other foreign enterprise with strong financial strength, advanced management and outstanding performance.
The joint-venture or sino-foreign cooperative company you established together with the foreign investor should be approved by related state authority and have acquired permission for foreign investment company and business license legally.
Your company should keep or acquire the controlling shares in the joint-venture or sino-foreign cooperative company and have the decision power for business operation after your increase of registered capital.
The increased capital your company invested is used to expand production, increase capital ratio or for other purpose recognized by our bank.
The original capital of the joint-venture or sino-foreign cooperative company invested by your company and the foreign investor before increase of capital this time has already been injected in full amount on time and audited in accordance with related laws. Your own fund for capital increase has already been audited legally and paid up in full in a timely manner.

Purpose, Amount, Tenor and Interest Rate of the Loan

The loan should be restricted to capital increase of joint-venture or sino-foreign cooperative company.
The maximum loan amount should not exceed 50% of the capital increase by the Chinese investor.
The loan could be provided in RMB or foreign currency.
The maximum tenor for the loan is ten years and should be within the operation period of your company as well as the joint-venture or sino-foreign cooperative company.
The interest rate should comply with interest rate for medium-term loan in RMB or foreign currency stipulated by The People's Bank of China.

Application Procedure

You could apply for such kind of loan at business offices of different levels of our bank and provide us with related materials, including the basic introduction of your company and the JV or sino-foreign company as well as the documentation for guarantee.

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