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
• Licensed to build ships for export and/or to repair such, or authorized to export ships, and or repair and reconstruct ships registered in other countries.

Qualifications for Loan Application

1. The borrower should be a shipbuilder or a proxy ship exporter that demonstrates shipbuilding capacity, contract performance capability, sound management and financial status, favorable credit standing, and the capability to repay the principal and interest incurred;

2. The borrower should have already signed a commercial contract for exporting ships, or for repairing or reconstructing ships registered in other countries;

3. In the case of a cash payment contract, the down payment shall be no less than 30% of the total contract value in principle. In the case of a deferred payment contract, the down payment in principle should be no less than 20% of the contract value;

4. In the case of payment in installments, a payment security acceptable to the Bank should, except the first installment, be available for the ensuing installments due. In the case of deferred payment, a security for payment approved by the Bank should be made for the amount overdue;

5. The importer should have a strong financial status and a reliable credit standing, devoid of any defective records;

6. For projects assumed risky, appropriate export credit insurance should be arranged in accordance with the requirements of the Bank;

7. Repayment guarantee acceptable to the Bank; and

8. Other requirements that the Bank deems to be of necessity.

Documents and Materials Required for Loan Application

Documents required for application of the Loan include:

1. Loan application;

2. The commercial contract for export of ship(s) and other related documents;

3. Exchange memos for aged repayments collected, a repayment guarantee for aging payments receivable, and a security for payment of the amount overdue to be deferred;

4. Cash flow statement of the export project and analysis of expected 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 borrower 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 the operations of both the borrower and the guarantor;

7. Letter of intent for repayment guarantee, or in case of mortgage or ledge, valid certificates of ownership of the property under mortgage or pledge and evaluation reports thereof; and

8. Other relevant documents demanded by the Bank.