Here is the synopsis of our sample research paper on Financing Guangzhou Guowei Piped LPG Development Co., Ltd.. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
An 11 page paper discussing Ivey Case 9B01N015, assessing how a Japanese bank in Hong Kong can justify offering a term loan to a private Chinese LPG gas company. The paper discusses net present value, the company’s prospects for the future and recommendation for how the bank can extend the loan while also protecting its interests. Includes 3 tables. Bibliography lists 8 sources.
Page Count:
11 pages (~225 words per page)
File: CC6_KSfinGuangGuow.rtf
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Unformatted sample text from the term paper:
Guangzhou Guowei Piped LPG Development Co., Ltd. (GG) is seeking a $10 million term loan to finance the equipment necessary to construct a new liquefied petroleum gas (LPG)
vaporizing station in the economically busy Guangdong province of Southeast China. Guangdong is the province in which the capitalist experiment was begun after the death of Chairman Mao, the
experiment that proved to be successful and paved the way for the opening of China to Western business. China has been working over the past generation to upgrade its
industrial infrastructure, and the Chinese government made forays into privatization of industrial services throughout the 1990s. GG is a product of such privatization
efforts. The company is not entirely free of the government in that the Guangzhou Economic and Technological Development District (GETDD) has a voice in GGs operations, and the China
State Administration of Foreign Exchange has the right to dictate the terms under which GG can accept funding in the form of loans. The Dai Ichi Kangyo Bank in
Hong Kong is the bank that GG has approached for a loan to purchase equipment it needs for the LPG station project. The Japanese bank is active in the
Chinese market and knows it well. It has suggested that it extends a $10 million loan to GG at an interest rate equal to LIBOR (London InterBank Offered Rate)
plus 1.5 percent. The China State Administration of Foreign Exchange has declined permission for GG to accept such terms, and will not extend permission for GG to proceed with
the loan at an interest rate higher than LIBOR plus 1.0 percent. Competition GG faces competition in the form of state-owned Guangzhou Gas
...