Overseas Loan Issuance of Domestic Institutions
refers to the financing method that domestic enterprises provide direct loan to fully-owned affiliated enterprises or shareholding enterprises incorporated legally overseas according to amount, interest rate and term agreed in the contract within the approval limit. Overseas loan may be issued by means of entrusted loan through designated foreign exchange banks and financial companies of enterprises incorporated upon approval and with foreign business qualification.
For loan issued overseas by domestic enterprises, the Lender and the Borrower shall comply with conditions regulated by the State Administration of Foreign Exchange. Firstly, the Lender and the Borrower shall both incorporate legally, and have fully paid the registered capital; secondly, the Lender and the Borrower shall have records of continuous favorable business operation, complete financial system and internal control system, and have no foreign exchange violation in recent three years; thirdly, the ODI projects of the Lender in previous years shall be approved by domestic competent departments of overseas investment, and shall handle foreign exchange registration procedures in Administration of Foreign Exchange; moreover, the rating of the latest overseas investment in joint annual inspection shall be Grade II or higher (unless the enterprise has been incorporated for less one year); if overseas loan is issued upon approval, the previous sum of overseas loan shall be operating normally without default.