Introduction

Loans for overseas contracted projects refer to the local- and foreign-currency loans provided by the Bank to meet the funding needs of enterprises undertaking foreign contracted projects.

Eligibility Requirements

It is targeted at Chinese and foreign borrowers.

Chinese borrowers refer to the enterprises registered with the administrative bureaus of industry and commerce of China and having an independent legal capacity and qualification for contracting overseas projects stipulated in the Administrative Regulation on Contracting Foreign Projects, Order No. 527 of the State Council as well as Measures for the Administration of the Qualification for Contracting Foreign Projects (Order No. 9 [2009] of the Ministry of Commerce and the Ministry of Housing and Urban-Rural Development). The loans are also targeted at Chinese enterprises or Chinese-controlled enterprises, which are registered overseas and meet the qualification requirements of the laws and regulations of the country or region where the project is located.

Foreign borrowers refer to overseas financial institutions, finance ministry or institutions authorized by the government of the importing country, and other overseas business owners. The contractors of overseas projects for which the Bank provides loans to foreign borrowers should be independent business entities in China. Alternatively, they can be overseas subsidiaries controlled or invested by such entities or other joint ventures of such entities.

Application Requirements

A Chinese borrower that applies for the loan to the Bank as a general contractor should meet the following conditions:

1.A domestic general contractor should have the qualification for contracting overseas projects as stipulated in the Administrative Regulation on Contracting Foreign Projects, Order No. 527 of the State Council of China, and Measures for the Administration of the Qualification for Contracting Foreign Projects (Order No. 9 [2009] of the Ministry of Commerce and the Ministry of Housing and Urban-Rural Development). An overseas general contractor should have relevant qualifications.

2.The borrower should have good record in production and operational management, financial performance and credit standing, and should have the ability to repay the loan principal and the interest accrued thereon.

3.The borrower should meet the Bank’s requirements for credit rating.

4.Relevant business contracts for overseas contracting projects must have been signed. They should also have obtained approval from the competent authorities of China when necessary.

5.The relevant projects should have good economic and social returns.

6.The project owner or payer should have corresponding economic strength and a good credit standing.

7.The economic and political situations of the country where the project is located should be relatively stable.

8.Export credit insurance should be purchased when necessary.

9.A repayment guarantee recognized by the Bank should be provided (if necessary).

10.Other conditions as deemed necessary by the Bank should apply.

A foreign borrower that applies to the Bank for the loan for overseas contracted projects should meet the following conditions:

1.The economic and political situations of the country where the borrower is located should be relatively stable, or the country-specific risks should be under control.

2.The borrower should have a good credit standing and the ability to repay the loan principal and the interest accrued thereon.

3.The borrower should meet the Bank’s requirements for credit rating.

4.The borrower should provide a repayment guarantee recognized by the Bank (if necessary).

5.Export credit insurance should be purchased, as deemed necessary by the Bank.

6.In cases where the borrower is a multilateral financial institution and has member(s) with no diplomatic ties with China, the borrower should obtain the consent of the Bank before application.

7.In cases where the borrower is an overseas financial institution, its credit record information must be obtainable from Banker Almanac, Bank Scope, Moody’s KMV, and other professional channels.

8.Other conditions as deemed necessary by the Bank should apply.