| Export Seller's Credit for Equipment (hereto the Loan)
refers to the loans, denominated either in Renminbi or foreign currencies,
provided by the Bank to Chinese companies to support their export
of complete sets of equipment, single units and related technical
services. This credit also provides support to Chinese contractors
who are successful bidders to projects undertaken in China that are
nevertheless financed by the World Bank, Asian Development Bank, and
other international financial organizations, and onlent loans from
foreign governments.
Prospective Borrowers
Prospective borrowers of the Loan include Chinese enterprises that
are
- Registered with the regional Administration of Industry and
Commerce and its local offices;
- Accredited with independent legal person status; and
- Authorized to export complete sets of equipment, mechanical
and electronic products.
Qualifications for Loan Application
1. The borrower should be an equipment manufacturer or a proxy exporter
that demonstrates appropriate production capacity, contract performance
capability, fine management, sound financial status, reputed credibility
standing, and the capability to repay the principal and interest
incurred;
2. The borrower has already signed an export contract, which, when
necessary, should be accompanied with authorization and approval
by competent government authorities;
3. The export contract value should be no less than USD 1 million,
while the advance payment by the importer shall amount to no less
than 15% of the total contract value in principle;
4. In the case of deferred payment, a payment guarantee acceptable
to the Bank should be provided for the amount overdue;
5. The importer should have a strong financial status and reliable
credit standing, devoid of any defective records in its performance;
6. For projects assumed risky, export credit insurance should be
arranged in accordance with the requirements of the Bank;
7. A repayment guarantee acceptable to the Bank should be provided;
and
8. Other requirements that the Bank deems to be of necessity.
Documents and Materials Required for Loan Application
1. Loan application;
2. The equipment export contract and the approval documents from
the competent government authorities, when required;
3. Exchange memos for aged repayment collected, a payment guarantee
for aging payments receivable, and a security for payment of the
amount overdue;
4. Cash flow statement of the export project and analysis of economic
returns;
5. A letter of intent for covering export credit insurance if such
is deemed necessary;
6. The borrower's license of export, profile statements of both
the borrower and the guarantor, a copy of business license of the
borrow having passed the annual examination, audited financial statements
of the past three years and audited financial statements of the
recent period of the current year, and other documents that demonstrate
the credit standings and operations of both the borrower and the
guarantor;
7. A letter of intent for repayment guarantee, or in case of mortgage
or pledge, valid certificates of ownership of the property under
mortgage or pledge and evaluation reports thereof; and
8. Other relevant documents demanded by the Bank.
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Brief
Introduction
