Export Seller’s Credit

Introduction 

Export seller’s credit refers to a business whereby China Eximbank provides local- and foreign-currency loans to domestic enterprises (excluding those in Hong Kong, Macao and Taiwan) that need funding for exporting products with low technological content, general mechanical and electrical products, complete sets of equipment, products with high technological content, ships, agricultural products, cultural products, and other approved products and services. 

1. Export seller’s credit for products with low technological content and general mechanical and electrical products refers to a business whereby the Bank provides local- and foreign-currency loans to meet the funding needs of borrowers for the purchase, production, transportation, and sales of products. It is aimed at supporting domestic enterprises in exporting labor-intensive and mechanical and electrical  products. 

2. Export seller’s credit for complete sets of equipment and products with high technological content refers to a business whereby the Bank provides local- and foreign-currency loans to meet the funding needs of borrowers for the purchase, production, transportation, and sales of products, or research and development of international services outsourcing projects (including software projects), premises and equipment leasing, purchase of materials, paying staff wages, undertaking tax expenditure, and carrying out technological authentication. It is aimed at supporting domestic enterprises in exporting facilities, and provision of equipment-related technical services, high- and new-tech products, and high value-added products with proprietary intellectual property and proprietary brands. In addition, it is also applicable to cases where Chinese enterprises need to provide relevant equipment after winning international tenders for domestic projects funded by international financial organizations, such as the World Bank and Asian Development Bank, and foreign government loans. 

3. Export seller’s credit for ships refers to a business whereby the Bank provides local- and foreign-currency loans to meet the funding needs of borrowers for supporting domestic enterprises in exporting ships, refitting or repairing foreign ships, producing key facilities for exported ships, and undertaking research and development on ship-related technologies and processes. In this context, the sale of ocean-going ships and marine engineering structures in the domestic market also falls within the ambit of export. 

Targets 

All domestic enterprises registered with the administrative bureaus for industry and commerce of China and having an independent legal capacity, or institutional legal persons qualified for borrowing can apply to the Bank for export seller’s credit. Moreover, group companies whose financial management is centralized can also apply to the Bank for export seller’s credit on the condition that they do not repeat borrowing from the Bank and agree in the contract that the loans provided shall be used for the export business of their subsidiaries. 

Application Conditions 

1. The borrower shall have viable operational management and financial conditions, good credit standing, and the ability to repay the loan principal and the interest accrued thereon. 

2. If the Bank’s existing measures are adopted for credit rating, the borrower’s credit rating with the Bank shall normally be above BBB (inclusive). The required credit rating of the borrower can be relaxed to BB if full guarantee from banks or strategic clients is provided or it is guaranteed by highly-liquid collateral/pledges. Moreover, if relevant implementation plans have special requirements, the implementation plan concerned shall prevail. 

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

4. Export credit insurance shall be purchased as deemed necessary by the Bank. 

5. Relevant projects shall be approved by the competent authorities of China and other countries (if necessary). 

6. Other conditions as deemed necessary by the Bank shall apply.