Abstract
In our presentation, we propose a bank loan pricing model for non-listed companies. We present a pricing formula for a principal-equal-repayment loan and derive the corresponding formula of relevant loan interest rate, which is sufficiently tractable. Indeed, the pricing model is specified by the three factors, the distribution of recovery rate estimated from Balance Sheet(B/S), the term structure of default probability and the default-risk-premium structure that each bank must choose individually. Discussing how to adjust the asset on B/S, we compute the parameter called B/S-adjusted asset-debt coverage ratio that specifies the distribution of recovery rate. Moreover we present some numerical results based on real accounting data of non-listed companies.
