Project Financing

Project Financing is for a specific project and the financial intermediation approach, which is international in a form of long-term loans, Project Financings for short. Due to inflation and the cost of major new projects rapid growth of investment risk is also growing; there are some other government or corporate funds are occupied in the ongoing projects, but also makes it unable to organize a new large projects. In order to promote the construction of major projects and developing new ways of funds, some banks set up this kind of Project Financings. This business with a variety of different traditional financing, in addition to the need for bank loans required project sponsors, the need to have a project for the construction of new units created for financing the project, construction and management that a project.
Introduction
Project Financings, also known as project financing or project financing, is the project itself has a relatively high return on investment, or a third party feasibility of a mortgage financing secured. The main form of collateral, including: project management rights, property rights and government in particular to support the project (with files) and so on. Project finance and general lending the biggest difference is the funds to repay the loan from the project itself, rather than other sources. The host of Project Financings only sponsor of the project unit, the financial and credit guarantees are no longer the main object of loans, funds provided directly by the lender to the project unit.
Product Type
Project Financings are generally long-term loans, but also for project temporary use of short-term working capital loans. Currently, the Industrial and Commercial Bank Project Financings by project nature, purpose, business nature and production of different stages of product development division, there are several loans. 1. Basic construction loan: refers to the right for approval by the state of infrastructure, public works, services, facilities and the extension of expanded reproduction of the new projects or expansion of productive capital and loans.
 2. Construction Loans: means for existing businesses to expand production to the main content of the technological transformation Project Financings.
3. Technology development loan: refers to the use of new technology and new product research and development, scientific and technological achievements to production areas or applications into loans.
 4. Commercial outlets loan: refers to the commercial, catering, service enterprises, to expand the network to improve services and facilities, increase the storage area, and other necessary funds, insufficient funds in the self-building to apply for loans.
In order to fully meet the needs of different customers, the Bank has developed a temporary revolving loan and Project Financing business acquisition loans varieties.
Project Financings project nature, purpose, nature and enterprises at different stages of product development and production division, can be divided into the following loans:
 5 M & Loan: It is advantage for domestic customers in the restructuring, the restructuring process, the compensation for mergers, acquisitions of domestic enterprises and other legal persons, the project has been completed and the assets, debt restructuring and financing needs arising from the loans. M & A loan is a special form of Project Financings.
 6. Real estate loans: including corporate real estate business and individual housing consumption loans. Introduced here only corporate real estate business, including real estate development loans, corporate loans to commercial buildings, student housing construction loans, construction and installation business investment in equipment loans.