M&A Loans
M&A Financing Advisory Service
Joint M&As
M&A Financial Advisory Service
M&A Fund
M&A Bond
Investment Banking Bridge M&A Restructuring Financing
Preference Shares, Convertible Bonds, and Exchangeable Bonds for M&As
PE Investment Exit Services
State-owned Enterprise Reform Services
M&A Transaction Information Exchange Platform
M&A Loans
I. Description
M&A loans refer to the loans that are disbursed to meet the acquirer’s or its special subsidiary’s needs on payment of the M&A transaction and repaid with the enterprise’s cash flow after the M&A, consolidated revenue or other legal income of the acquirer.
II. Applicable Targets
1. The acquirers applying for M&A loans shall open basic or general deposit account with ICBC, operate in a lawful and compliant manner, and maintain sound credit record without any bad records of credit default or evasion or rejection of banking debts;
2. The acquirer’s credit rating shall meet the access requirements of ICBC’s M&A loans;
3. The applicant shall meet the national industrial policies and the industrial credit policies of ICBC, and shall be of highly industry-related or strategic relevance to the target enterprises; and
4. The M&A deal shall be lawful and compliant.
III. Charging Standards
Through negotiation, both parties enter into the M&A financial advisory service agreement. The financial advisory service will be charged as per agreed standard.
M&A Financing Advisory Service
I. Description
During the M&A financing process of enterprises, ICBC makes flexible use of its financial knowledge, financial instruments and financial channels to provide advisory services, such as designing the financing plan, analyzing the financing risks, assessing the loan repayment ability and assisting in arrangement of the M&A funds.
II. Applicable Targets
Corporate entities or specialized investment institutions that need the M&A financing services.
III. Charging Standards
Through negotiation, both parties enter into the M&A financial advisory service agreement. The financial advisory service will be charged as per agreed standard.
Joint M&As
I. Description
In the joint M&A business, ICBC makes use of the investment banking services to provide the joint investment entities of restructuring and M&A with whole-process and diversified investment banking services, such as organization advisory service, financing advisory service, transaction advisory service and post-M&A management (exit) advisory services etc.
II. Applicable Targets
Sponsors of joint M&A deals that have the M&A needs but can’t independently complete the M&A, and need to rely on the strength and resources of partners to accomplish the M&A; joint investment entities during the restructuring and M&A deals; and financial investors that need to exit from its investment.
III. Requirements
Customers applying for agency M&A and investments shall operate in a lawful and compliant manner and maintain favorable credit records without such bad records as credit default or evasion and rejection of banking debts.
IV. Application Process
Customers may submit the applications to the Domestic M&A Division of the Investment Banking Department of the Head Office of ICBC.
V. Service Channels and Hours
Customers may directly contact the domestic M&A Division of the Investment Banking Department of the Head Office of ICBC.
VI. Charging Standards
Through negotiation, both parties enter into the M&A financial advisory service agreement. The financial advisory service will be charged as per agreed standard.
M&A Financial Advisory Service
I. Description
M&A financial advisory service refers to the service that ICBC provides deal making, due diligence investigation, value assessment, transaction structure design, M&A risk assessment, commercial negotiation assistance, delivery assistance and other services to the customers during the customers’ M&A process.
II. Applicable Targets
Corporate entities or specialized investment institutions with M&A needs.
III. Operational Guide
The general workflow of M&A financial advisory services include two stages: a) business marketing, and b) project operations. Business marketing starts from discovering the project clues and includes services such as demand confirmation, information storage, preparation and submission of the project proposal. It aims at getting the Financial Advisor Mandate from the customers or having the customers sign the Restructuring and M&A Advisory Service Agreement with ICBC.
Project operation starts from project establishment and includes contents such as team organization, due diligence investigation, deal making, plan design, value assessment and operation management etc.
IV. Charging Standards
Through negotiation, both parties enter into the M&A financial advisory service agreement. The financial advisory service will be charged as per agreed standard.
M&A Fund
I. Description
M&A fund refer to the M&A transaction, where money is raised in the form of fund. ICBC provides whole-process and diversified investment banking services, such as organization advisory service, project recommendation, fund raising and post-M&A management (exit) advisory service.
II. Applicable Targets
Sponsors of joint M&A deals that have the M&A needs but can’t independently complete the M&A, and need to rely on the strength and resources of partners to accomplish the M&A; listed companies and their controlling shareholders who have needs for M&A fund during asset acquisition or industrial integration; other corporate entities or professional investment institutions who have M&A needs.
III. Requirements
Customers applying for such service shall operate in a lawful and compliant manner and maintain favorable credit records without any bad records such as credit default or evasion and rejection of banking debts.
IV. Charging Standards
Through negotiation, both parties enter into the M&A financial advisory service agreement. The financial advisory service will be charged as per agreed standard.
M&A Bond
I. Description
M&A bond refers to the securities issued by the acquirer to investors in the form of public placement and private placement to meet their fund demand, the principal and interest of which are repaid within a period of time based on the agreed conditions.
M&A bond advisory service is the service provided by ICBC serving as a chief coordinator for issuers, or cooperative institutions with relevant bond underwriting and recommendation qualifications.
II. Applicable Targets
Issuers and underwriting institutions of M&A bond.
III. Charging Standards
Through negotiation, both parties enter into the M&A financial advisory service agreement. The financial advisory service will be charged as per agreed standard.
Investment Banking Bridge M&A Restructuring Financing
I. Description
Investment banking bridge M&A restructuring financing refers to bridge financing services provided by investment banks specifically for M&A or financial restructuring.
II. Applicable Targets
1. The acquirers shall open basic or general deposit account with ICBC, operate in a lawful and compliant manner, maintain sound credit record, and don’t have any bad records of credit default or evasion or rejection of banking debts;
2. The applicant’s credit rating shall meet the access requirements of agency M&A and investment;
3. The applicant shall meet the national industrial policies and the industrial credit policies of ICBC, and shall be of highly industry-related or strategic relevance to the target enterprises; and
4. The M&A deal shall be lawful and compliant.
III. Requirements
Customers applying for agency M&A and investments shall operate in a lawful and compliant manner and maintain favorable credit records without any bad records such as credit default or evasion and rejection of banking debts.
IV. Charging Standards
Both parties shall sign the restructuring and M&A financial advisory service agreement through negotiations. The financial advisory service will be charged as per agreed standard.
Preference Shares, Convertible Bonds, and Exchangeable Bonds for M&As
I. Description
Preference shares, convertible bonds, and exchangeable bonds for M&As refer to the preference shares, convertible bonds, and exchangeable bonds issued by the acquirers to investors in the form of public or private placement to meet the needs for M&A funds.
II. Applicable Targets
Preferred shares and convertible bonds are applicable to listed companies; exchangeable bonds are applicable to shareholders of listed companies.
III. Charging Standards
Through negotiation, both parties enter into the M&A financial advisory service agreement. The advisory service will be charges as per agreed standard.
PE Investment Exit Services
I. Description
The PE investment exit service includes two scenarios. First, the Bank can provide M&A advisory services for the underlying shares sold in the primary market and seek new investors for them; second, the Bank can provide M&A investment and financing for integration of the equity of the underlying company or PE fund share, and facilitate successful completion of investment.
II. Applicable Targets
PE institutions with good track record and strong market influence
III. Charging Standards
Through negotiation, both parties enter into the M&A financial advisory service agreement. The advisory service will be charges as per agreed standard.
State-owned Enterprise Reform Services
I. Description
Taking advantage of ICBC’s brand effect of M&A business and its strength in investment and financing products such as M&A loans, agency M&A and investment businesses, and through participating in state-owned enterprise reform projects with M&A products, the bank provides advisory services and financing support for participants in the reform.
II. Applicable Targets
Enterprises owned by the central government, local state-owned enterprises, and investment institutions focusing on the mixed reform of state-owned enterprises
III. Charging Standards
Through negotiation, both parties enter into the M&A financial advisory service agreement. The advisory service will be charges as per agreed standard.
M&A Transaction Information Exchange Platform
I. Description
The M&A transaction information exchange platform refers to building an information platform to interface with the needs of the parties involved in M&A transactions. The platform systematically collects, sorts out, processes, and uses M&A transaction information, accurately aligns the information with the customers’ M&A needs for purchase or sale, and expands the business and customer information sources. The platform participates fully in the consultancy-financing-investment chain, and extensively constructs an ecosystem that serves the customers’ M&A investment sector.
II. Applicable Targets
Corporate entities or specialized investment institutions that need M&A services
III. Charging Standards
Through negotiation, both parties enter into the M&A financial advisory service agreement. The advisory service will be charges as per agreed standard.
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Disclaimer:The information contained herein is for reference only. Terms and conditions are subject to regulations issued by local ICBC branch.
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