The steel trade enterprise to seek Trust financing
 
Recently, Tianjin Trust issued a Tianjin Trust business enterprises (Tianjin Hugh Bolton, loan) Capital Trust scheme, plans to raise 100 million yuan of funds for a period of one year, the minimum investment amount of 100 million, the highest expected rate of return 9.7 %.
This reporter learned that Tianjin Hugh Bolton is a steel trade enterprise loan funds to pay for the corporate purchase of steel required for the purchase price. By convention, the Trust is scheduled to expire, the borrower to sales revenue as a source of repayment.
According to the different amount of the trust scheme single funds, investors expected rate of return ranging from 7.6 to 9.7%, in which a single subscription $ 300 million to 990 million, expected annual yield of 9%.
 
A trust company insiders on the "Daily Economic News" reporter, in accordance with the size of funds raised, the trust company to charge a management fee of 1-3%, a maximum of 5%. 100 million yuan to raise plan, trust income is usually the management fee of 3%, 1% sales charge, bank charge a hosting fee of 1 ‰, the companies actually paid about 13 percent of the interest to the trust, compared to bank lending rate was nearly doubled.
 
"Although the trust and financing costs, but the two sides engaged in discussions about the release of the product and raise the success of the whole process as long as 2-3 months, the time cost of bank financing." These people said, "but the banks for capital purposes strictly limited relatively flexible, while the use of trust funds, Trust Company, as the regulatory stringency of. "
 
In December 2009, Tianjin Hugh Bolton had commissioned Tianjin Trust to issue a one-year collection of trust products, to raise funds for 70 million yuan, is expected for the highest annual rate of return of 6.8%. Borrowings from Tianjin Investment Co., Ltd. to provide a guarantee to provide collateral guarantees and the shops of approximately 7542.02 square meters.
 
The end of 2011, the Shanghai Federation of Industry and Steel Trade and Chamber of Commerce president Cui Jianhua publicly disclose to do officially approved the proposal has been declared, and the corresponding support of the Shanghai Political Consultative Conference on the establishment of the industry, guarantee companies, trusts plan, pending financial or will herald the birth of the steel trade and the industry's first "Trust Fund".
 
Ups and downs of China's steel market, small and medium-sized steel enterprises financing difficulties ", Cui Jianhua suggested to play an active role in the Bank of UNPROFOR and other aspects, the establishment of the industry guarantee company or trust funds, the Chamber of Commerce is trying to a new ways.



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