International commercial loans refer to domestic institutions to commercial financing conditions in the country's financial markets, and to take foreign currency contractual obligation to repay the funds. International commercial loans include: foreign banks (institutions) loans, export credits, issuing foreign currency bonds, convertible bonds and negotiable certificates of deposit and medium-term notes and other securities other than stocks, international finance lease, means the return of the compensation in cash trade, project finance, foreign residents in the territory of the deposits and to raise other forms of commercial financing.
Classification of international commercial loans
1) international commercial banks and syndicated loans
Foreign commercial banks and other financial institutions is a national organization to foreign commercial banks and other financial institutions to raise capital by borrowing, generally include two forms, one is from one or two foreign financial institutions to provide loans, a is led by a number of foreign financial institutions, financial institutions syndicate, co-borrower to provide a large amount of long-term loans, often referred to as the international syndicated loan (also known as syndicated loans). International syndicated loans has become a huge international and long-term funds to raise the main form, its amount is usually tens or hundreds of millions of dollars, and some up to billions of dollars. The use of the loans is very clear, such as buying equipment, aircraft and ships, the borrower is often central or local government, central banks, official financial institutions, development banks, Export-Import Bank and the multinationals.
2) export credit
Export credit export-backed Government, through the banks to provide export credit. Countries in the world to support and expand their exports, by country pay interest subsidies and export credit guarantees to encourage commercial banks to their own domestic or foreign importers exporters (or banks) to provide low interest loans to address the needs of the buyer to pay . For the amount of export trade in the larger, longer payment terms, such as the export of complete sets of equipment, often used to provide export credit method. Export credit by the buyer to accept the different objects are divided into credit and seller credit. Bank credit is the buyer directly to the exporter or importer importers bank (ie the buyer) to provide business credit, generally limited to 85% of contract amount, and 15% of contract amount as a deposit, the signing of the contract be paid within 1 month after . When complete delivery by the seller or the factory put into operation, the importer or exporter importer Bank Bank of fractionated further repayment. Seller's credit is the bank to its exporters exporter (seller) to provide business credit, foreign importers are also exporters of deferred payment to a credit approach.
Exporters to sell their products, and the Bank signed a credit contract, the exporter, the importer to get export credit as advance funds to buy their products, allowing the buyer on credit. In installments. Using the seller's credit, the importer in order generally paying 15% of the deposit contract amount, and the remaining money in the delivery of all or factory started production after having repaid. After repayment of the importer, exporter exporter to return the money bank. As exports have a policy of government subsidies, export credit interest rate is slightly lower than market interest rates, this way you can borrow to purchase complete sets of large equipment needed huge amounts of money, but also allows the borrower competing exporters have multiple choices . However, due to export credit to purchase goods with the contact, it is sometimes better conditions of export credits, but the equipment may not be applicable, although the application or device, but the prices are often higher than the open tender, and export credit can only provide part of the funds to purchase equipment , can not be used to import raw materials and local costs.
3) The issuance of international bonds
International bond is a government financial institution or business enterprises in foreign financial markets issued to foreign currency-denominated bonds. The issuance and trading, can be used to balance the issuing country's international balance of payments, can also be used for distribution of funds into government or business engaged in the development and production. This approach is currently financing in international financial markets are increasingly important. International bond repayment period, interest rates according to whether the changes are divided into fixed-rate bonds and floating rate bonds of two; at maturity divided into short-term bonds (1 year), medium term notes (1 to 5 years), long-term bonds (10 years) and many other. International bond issue of the parties, including issuers, investors and syndicate and so on. Issuer that is the main issue bonds, it can be the government, financial institutions or enterprises. Investors to buy bonds that the actual subject. Underwriting syndicate was commissioned by the issuer to sell bonds to investors, intermediaries. General underwriting syndicate led by a financial institution, to participate in a number of financial institutions, responsible for underwriting the issuance of bonds. They belong to different countries to raise funds from foreign financial markets. Foreign bonds issued prior to the first subject to the foreign issuer rating agency's rating, and then to determine the conditions of issue, issuing conditions include Amount, the choice of issuing currency, maturity, interest rate, issue price, issue after issue costs of bonds circulation in the secondary market, secondary market prices with the international financial market conditions change. If the bond is poor performance in the secondary market, the issuer may affect the credibility and future release results. In addition, international financial markets in recent years there have been some new types of bonds: one is convertible into common shares of the special corporate bonds, convertible bonds, short, with the characteristics of bonds and stocks, it is between bonds and stocks between bonds and stock options will be combined with financial instruments; the other is the bond with warrants, the bondholders present their bonds with warrants in the agreed period of time according to the conditions prior to purchase new publisher issued shares.
4) project financing
Project financing is for construction projects, the first formation of the company, by the shareholders in proportion to inject equity capital, total investment and equity capital, the difference to the project for the debtor company itself, not through government agencies or financial institutions to guarantee their loans rely on the proceeds put into the project and the project's cash flow to ensure repayment of an international commercial loans. The use of project financing of projects are generally large projects involving technology are more complex, if not the technical feasibility of the project, the lender is not easily refer people. Project financing of several common forms are: product payment, long-term purchase, finance lease, bot financing, asset-backed securities future earnings for funding (abs) and so on.
5) The new debt financing
Since the 1980s, international financial markets set off a wave of wave of innovation, new fund-raising tools are emerging, derived from external borrowing in a variety of ways:
(1) Automatic extension of credit underwriting. This is a currently popular in the developed world loans. The basic approach is: the lender (usually syndicated) The two sides signed an agreement with the borrower, the borrower by the lender to provide a long-term loans, the interest rate lower than the general loan and the borrower is based on the two sides signed an agreement to issue a and the sum, the long-term loans equal to the total short-term bills or European currency deposits (3-6 months), underwritten by the lender. Thus, by underwriting short-term lending bank notes or currency certificates of deposit in Europe get short-term deposits, while the borrower from the lender get the cost lower than conventional loans is the cost of long-term loans. Such borrowing is characterized by the borrower's borrowing costs lower than conventional financing, lenders can provide longer-term loans at the same time, distribution of a short-term bills, in order to obtain a short-term deposits, increased cost sources of funding.
(2) mobile repay the loan. This is a repayment of the loan and the borrower country's export earnings or international capital markets, the combination of interest rate changes and other loans. Such as: the loan repayment and the borrower country's export earnings link, when export revenues decline, the loan amortization accounted for the proportion of debt service on the decline, or on the increase. If the international capital market interest rate changes on linked when interest rates decline, debt service ratio is high, otherwise reduced. In this way, the borrower country's imports and exports according to the international financial market conditions and changes in arrangements for repayment plan.
(3) share equity loans. The two sides signed a loan agreement, the lender's interest rate below market prices to provide loans to borrowers, and lenders have loan programs can be part of the shares, which by the borrowers and lenders share the project risk. The two sides signed the agreement in general to the project to provide for the pricing of products and lenders, according to the equity they have access to certain project management.
