Experiencies in financing Finnish companies' operations in China
Experiencies in financing Finnish companies' operations in China
Experiencies in financing Finnish companies' operations in China
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Regulatory issues <strong>in</strong> f<strong>in</strong>anc<strong>in</strong>g projects <strong>in</strong> Ch<strong>in</strong>a<br />
• Strict rules about the capital structure depend<strong>in</strong>g on the total<br />
project size (foreign loans, <strong>in</strong>cl. parent company loans)<br />
– Projects under USD 3 million: 70 % equity required<br />
– Projects USD 3-4,2 million: USD 2,1 million equity required<br />
– Projects under USD 10 million: 50 % equity required<br />
– Projects USD 10-12,5 million: USD 5 million equity required<br />
– … Projects above USD 36 million: 33,3 % equity required<br />
• Hold<strong>in</strong>g company structures often used (various reasons)<br />
• Only loans or equity possible, mezzan<strong>in</strong>e not allowed<br />
• RMB f<strong>in</strong>anc<strong>in</strong>g not <strong>in</strong>cluded <strong>in</strong> the loan quota of the<br />
<strong>in</strong>vestment license (above percentages)<br />
13.4.2012<br />
7
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