The Feasibility Analysis Of Overseas Investment Loans About Company X Indonesia Marine Mining Project And Loan Structure Design

Since the beginning of the21st century, China’s participation into the global economy is developing more and more rapidly. China’s international development is more than simply exporting of merchandise, but investing and building Chinese corporations oversea. Through international cooperation, Chinese companies are able to enter bigger markets, modify their internal structures and bring more opportunities to China’s domestic markets. Investing in the global market benefit both the target countries and China’s economies at the same time. During the decade, China’s international investment increased rapidly, ranking in the5th place globally in term of the investment volume. Financial institutions play an important role in the process of Chinese economy global expansion. Also, financial institutions power up Chinese companies’ global development by providing financing and consulting services. Thus, it is meaningful to study how to finance domestic companies’ global expansion. Since investment loan is the major resource to acquire funding, the following article will discuss the feasibility of various loans. In order to benefit our domestically more directly, the article is going to use company X’s marine mining investment in Indonesia as an example.Based on recent research, lenders use6C, including character, capacity, capital, collateral, condition and control, to testify borrowers’ credit. The analyzing process starts from the macro perspective to the micro one. From the macro perspective, the analysis emphasizes the general risks of investing in Indonesia and the commercial relationship between Indonesia and China. In addition, the article will display a supply and demand analysis of the Vanadic Titanomagnetite. From micro perspective, the article will pay close attention to both the lenders and borrowers. For instants, borrowers’ operational conditions, management teams are used to measure their credit capacity. The financial analysis will focus on borrowers’ debt capacity and development potential. The project analysis will focus on the company’s cash flow. When the borrowers’ parent company cannot provide enough collateral, the author creatively apply supply chain financial management idea to ensure the downstream partners provide sufficient responsibility collateral. In addition, the article will provide a detailed collateral plan by the end.