Cross-border Lease

To?support?our?nation’s?large-scale?equipment?manufacturing?industry?“going?out”,?help?domestic?equipment?vendors?/?distributors?to?achieve?cross-border?sales,?help?the?domestic?project?contractors?who?participated?in?international?infrastructure?projects?through?the?forms?of?EPC,?BT,?BOT,?PPP?to?get?liquidity?support,?help?the?Chinese?enterprises?who?established?overseas?factories?for?production?activities?to?vitalize?fixed?assets,?and?to?provide?financial?support?for?cross-border?mergers?and?acquisitions?of?domestic?enterprises,?CMB?Financial?Leasing,?by?setting?up?special?purpose?company?(SPV)?(the?leaser)?in?Hong?Kong,?Ireland?or?Bermuda?and?other?areas,?in?the?form?of?lease?for?(1)?overseas?customers?(the?lessee)?of?domestic?equipment?suppliers/distributors;?(2)provide?cross-border?financing?for?Chinese?project?contractors?(the?lessee)?participated?in?construction?of?international?infrastructure?projectsor?overseas?owners?of?domestic?project?contractors?(the?lessee);?(3)Chinese?enterprises?who?set?up?overseas?factories?for?production;?(4)?provide?financial?leasing?for?the?mergers?and?acquirers?of?cross-border?equity.

·During?lease?term,?the?ownership?of?equipment?is?owned?by?overseas?SPV?of?CMB?Financial?Leasing,?the?physical?location?and?maintenance?of?equipment?is?not?affected?by?leasing?business,?the?lessee?has?the?right?to?use?the?equipment?and?profit?from?it.
·The?lessee?shall?pay?rent?to?overseas?SPV?of?CMB?Financial?Leasing?in?accordance?with?the?agreement?of?lease,?with?the?nominal?price,10-100?US?dollars?(or?other?agreed?currency)?,?to?purchase?the?ownership?of?equipment.
Application?fields
·?Equipment?manufacturers/distributors
·?Domestic?project?contractors?who?participated?in?international?infrastructure?projects?through?the?forms?of?EPC,?BT,?BOT,?PPP

·?Chinese?enterprises?set?up?overseas?factories?for?production?activities

·?Chinese?enterprises?implement?cross-border?mergers?and?acquisitions?overseas
?Advantages?
·?
Help?the?lessee?to?vitalize?fixed?assets,?increase?abundance?degree?of?cash?flow

·?Cross-border?leasing?use?overseas?funds,?with?a?greater?cost?advantage?compared?to?domestic?lease.

·?Part?of?the?national?laws?allows?taking?the?lease?term?as?depreciation?period,?to?realize?accelerated?depreciation,?help?the?lessee?to?obtain?the?earnings?of?deferred?tax.

·Can?select?places?in?global?scope,?select?the?countries?which?have?the?minimum?agreed?withholding?tax?rate?of?bilateral?tax?with?the?lessee’s?country,?and?have?steady?tax?to?set?up?SPV,?to?help?the?lessee?to?save?the?expenditure?of?withholding?tax.

·?In?the?case?of?permits?by?local?laws,?through?the?mode?of?operating?lease?to?help?the?lessee?to?let?assets?out?of?the?table;Operating?lease?products?can?also?help?part?of?the?subsidiaries?of?Central?Enterprise?Group?to?avoid?the?complicated?internal?approval?process?of?equipment.

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