CCB Completes US$80 Million of International Equipment Financing for Beijing Subway

Recently CCB completed the US$80 million of international financing for the construction of Beijing Olympic Games project Subway Line 5. It is said that CCB has signed the export credit agreement with HSBC and the on-lending agreement with Beijing Subway Line 5 Company respectively, which marks that CCB completed the financing for introducing foreign equipment and construction project for Beijing Subway Line 5.

 

Beijing Subway Line 5 is a major component of the 2008 Beijing Olympic Games projects as well as a key infrastructure construction project of the capital city. In response to the project needs of introducing foreign equipment, CCB formulated a comprehensive structured financing scheme for Beijing Subway Line 5 Company. Prior to the project, CCB has offered the financing services of importing automatic fare collection system from Japan for Subway Line 5. The financing for importing subway equipment via export credit from a British bank integrates the risk forecast on interest and exchange rates, not only cutting the overall financing cost but also opening new channels for Chinese business to use low cost overseas capital.