Ways of international financing
International financing refers to raising working capital needed for enterprise development through the international financial market. Medium and long-term funds. The purpose is to enter a market with more favorable capital costs, expand the availability of enterprise development funds, and reduce capital costs.
The main methods of international financing are as follows:
1. Attract foreign investors directly Investment
Attracting foreign direct investment means that enterprises directly absorb funds from foreign enterprises, companies, individuals, etc. in the form of agreements, contracts, etc. It is a process that foreign investors do not Investment activities carried out directly by investors in other countries and regions through intermediary financial institutions.
1. Forms of attracting foreign direct investment
(1) Wholly foreign-owned enterprises
(2) Sino-foreign joint ventures
(3) Sino-foreign joint ventures
2. Issues that should be paid attention to when absorbing foreign direct investment
(1) Determine the reasonable amount to attract foreign direct investment.
(2) Choose a reasonable investment form and investment ratio.
(3) Clarify the property rights relationship in the investment process.
(4) Pay attention to the trade-off between the costs and benefits of absorbing foreign direct investment.
(5) When making direct investment with foreign investors, you should also pay attention to the technical level of the project.
2. InternationalSecurities financing
1. International bond financing
Bonds in the international market are mainly divided into There are two types: foreign bonds and Eurobonds.
2. International equity financing
At present, the main ways for Chinese enterprises to conduct international stock financing are: issuance B shares, H shares and N shares, issuance and listing of shares using depositary receipts, etc.
3. International lending and financing
International lending and financing is a or Credit activities in which several countries, financial institutions, and companies lend a certain amount of funds to borrowers at an agreed interest rate and period, and recover the principal and interest within the agreed period.
International lending can generally be divided in terms of funding sources: loans from international financial organizations, government loans, and loans from international commercial banks.
IV. International project financing
International project financing is a Special financing methods refer to financing methods that raise funds overseas in the name of domestic construction projects and bear debt repayment responsibilities with the project's own income flow, its own assets and equity, and are also non-recourse or limited recourse. Financing.
1. BOT method
BOT is the abbreviation of Build-Operate-Transfer in English, which means Build-Operate-Transfer. Business transfer method. The government grants a concession for an infrastructure project to a contractor (usually a consortium). During the concession period, the contractor is responsible for project design, financing, construction and operation, and recovers costs, repays debts, and earns profits. Upon completion, project ownership will be transferred to the government. In essence, the BOT financing method is a special operating model in which the government and contractors cooperate to operate infrastructure projects. In our country, it is also called "concession financing method".
2. International financial leasing
Financial leasing is also a financial lease, which means that when the project unit needs When purchasing technical equipment but lacking funds, the lessor will purchase or rent the required equipment on its behalf, and then lease it to the project unit for use, and the rent will be recovered on schedule, and the total amount of the rent will be equivalent toIt is the sum of equipment price, loan interest and handling fees. When the lease expires, the project unit, the lessee, takes ownership of the equipment with a nominal payment. During the lease period, the lessee only has the right to use the property and the ownership belongs to the lessor.
Because international financing is based on transnational and cross-regional processes, differences in legal regulations and policies between different jurisdictions will have a certain impact on international financing. . The above is the knowledge about international financing methods compiled by the editor of the Legal Savior Network for you. If you have any questions, you are welcome to go to the Legal Savior Network for legal consultation.
