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The Export Seller's Credit refers to loans provided to an exporter to finance its export of manufactured or purchased mechanical and electronic products,complete sets of equipment, and high- and new-tech products as well as the provision of labor services.
Credit Nature
Export Seller's Credit provided by China Eximbank is not profit-oriented and bears the following official features:
1.The capital of the Bank comes from fiscal allocation of the Chinese government;
2.The credit is provided for the purpose of lending strong government support in line with relevant national industrial, foreign trade, financial and fiscal policies.
Credit Features
Export Seller's Credit provided by China Eximbank is:
1.a loan provided to the exporter;
2.a loan with large amount, long maturity and preferential interest rate;
3.a loan with an official nature demonstrating the state will.
Credit Purpose
1.To support the export of Chinese products and improve their competitiveness in the international market;
2.To help earn foreign exchange currency and keep foreign exchange balance;
3.To create domestic employment opportunities and contribute to the development of the national economy.
Credit Types
1. Export Seller's Credit for Equipment
Export Seller's Credit for Equipment refers to the loans, denominated either in Renminbi or foreign currencies,provided by the Bank to Chinese companies to support their export project of complete sets of equipment (includingaccessories), single units and related technical services.
For those projects undertaken in China that are financed by the loans from the World Bank, Asian Development Bank and other international financial institutions or foreign governments, if there are Chinese contractors winning the international tendering of equipment supply under the projects, the Bank can also be approached for this credit.
For those projects in which Chinese companies build ocean engineering structures for domestic companies engaged in offshore natural gas exploitation, or Chinese offshore natural gas exploitation companies trade between them equipment-type ocean engineering structures, the Bank can be approached for this credit.
Prospective Borrowers
Prospective borrowers include Chinese companies that are registered with Chinese Administration of Industry and Commerce or its local offices, and accredited with independent legal person status.
Application Requirements
1)The borrower shall be an equipment manufacturer or an export agent that demonstrates appropriate production capacity, reliable contract performance capability, sound management and financial status,favorable credit standing, and debt servicing apability;
2)The export contract value shall be no less than USD 1 million except for the export of equipment-related technical services; or the yearly accumulated export volume of the borrower exceeds USD 5 million.
3)The equipment export project shall conform to relevant regulations set in the Administrative Measures Regarding Coordinating the Export of Single Units of Heavy Machinery and Complete Sets of Equipment. (MOFTEC Order of Ministry No.33, 2001);
4)In the case of deferred payment, a payment guarantee acceptable to the Bank shall be provided for the amount overdue;
5)The importer shall have strong financial status and reliable credit standing;
6)In the case where repayment is assessed as of high risk, export credit insurance shall be arranged in accordance with the requirement of the Bank;
7)A repayment guarantee acceptable to the Bank shall be provided;
8)Other requirements that the Bank deems necessary.
Application Documents
1)Loan Application;
2)The equipment export contract, approval documents from competent government authorities, and documents required by the Administrative Measures Regarding Coordinating the Export of Single Units of Heavy Machinery and Complete Sets of Equipment;
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 together with an analysis of economic returns;
5)A Letter of Intent for covering export credit insurance (if such an insurance is required);
6)Profile statements of both the borrower and the guarantor, duplicate copy of business license of the borrower that has passed the annual examination,audited financial reports of the past three years and the audited financial statement for the current year, and other documents that demonstrate the credit standings and operations of both the borrower and the guarantor;
7)In the case of calculating fund need by credit line, statements and reports covering the export of equipments in the past three years by the borrower,export plans for the current year and signed export contracts shall be provided.
8)A Letter of Intent for repayment guarantee, or in the case of mortgage or pledge, valid certificates of ownership of the property under mortgage or pledge and evaluation reports thereof; and
9)Other documents required by the Bank.
2. Export Seller's Credit for High- and New-tech Products
(Including Software Products)
Export Seller's Credit for High- and New-tech Products (including software products) refers to loans,denominated either in Renminbi or foreign currencies,provided to Chinese companies for financing their export of high- and new-tech products excluding ships and equipment.
Prospective Borrowers
Prospective borrowers include Chinese companies that are registered with Chinese Administration of Industry and Commerce or its local offices, accredited with independent legal person status, and authorized to export high- and new-tech products.
Application Requirements
1)The borrower shall demonstrate fine management and operations, sound financial status and favorable credit standing, and shall be capable of repaying the principal and interest incurred;
2)The export products shall be included in the List of Mechanical and Electronic Products promulgated by the Chinese government, or shall be confirmed as such by competent government authorities;
3)The borrower's yearly export volume of the high- and new-tech products shall reach USD 3 million,or USD 1 million in the case of software products;
4)In the case of a software exporter, the borrower shall demonstrate powerful research and product development capacity, having obtained either CMM Level* or above Certificate or GB/T19000-ISO9000 quality assurance certificate;
5)A repayment guarantee acceptable to the Bank shall be provided;
6)Other requirements that the Bank deems necessary.
Application Documents
1)Loan Application;
2)Export license of the borrower, profile statements of both the borrower and the guarantor, a duplicate copy of the business license of the borrower that has passed the annual examination, audited financial reports of the past three years and the audited financial statements for the current year, and other documents that demonstrate the credit standings and the operations of both the borrower and the guarantor;
3)Statements and reports covering the borrower's export of high- and new-tech
products in the past three years, export plans for the current year, together with export contracts already signed;
4)A Letter of Intent for repayment guarantee, or in the case of mortgage or pledge, valid certificates of ownership of the property under mortgage or pledge and evaluation reports thereof;
5)Other documents required by the Bank.
3. Export Seller's Credit for General Mechanical and Electronic Products
Export Seller's Credit for General Mechanical and Electronic Products refers to loans, denominated either in Renminbi or foreign currencies, provided to Chinese companies for financing their export of the mechanical and electronic products excluding ships, equipment and high- and new-tech products.
Prospective Borrowers
Prospective borrowers include the Chinese companies that are registered with Chinese Administration of Industry and Commerce or its local offices,accredited with ndependent legal person status, and authorized to export general mechanical and electronic products.
Application Requirements
1)The borrower shall demonstrate fine management and operation, sound financial status and favorable credit standing, and shall be capable of repaying the principal and interest incurred;
2)The export products shall be either entries on the Export List of High- and New-Tech Products and the List of High- and New-tech Products promulgated by Chinese government or products confirmed as high- and new-tech by competent government authorities;
3)The borrower's yearly export volume of the high- and new-tech products shall reach USD 3 million, or USD 1 million in the case of software products
4)In the case of a software exporter, the borrower shall demonstrate powerful research and product development capacity, having obtained either CMM Level * or above Certificate or GB/T19000-ISO9000 quality assurance certificate;
5)A repayment guarantee acceptable to the Bank shall be provided;
6)Other requirements that the Bank deems necessary. Application Documents
1)Loan Application;
2)Export license of the borrower, profile statements of both the borrower and the guarantor, duplicate copy of the business license of the borrower that has passed the annual examination, audited financial reports of the past three years and recent audited financial statements of the current year, and other documents that demonstrate the credit standings and the operations of both the borrower and the guarantor;
3)Statements and reports covering the borrower's export of general mechanical and electronic products in the past three years, export plans for the current year, and export contracts already signed;
4)A Letter of Intent for repayment guarantee, or in the case of mortgage or pledge, valid certificates of ownership of the property under mortgage or pledge and evaluation reports thereof; and
5)Other documents required by the Bank. 4. Loan to Overseas Construction Contract Loan to Overseas Construction Contract refer to the loan, either in Renminbi or foreign currencies, that the Bank provides to Chinese companies to finance their construction projects implemented in foreign countries, which may stimulate the export of Chinese equipment, construction machinery, building materials, technology, and labor services.
This credit is also applicable to Chinese contractors who win the tendering in international bidding on the projects that are implemented in China and financed by the World Bank,Asian Development Bank and other internationalfinancial institutions.
Prospective Borrowers
Prospective borrowers include Chinese companies that are registered with Chinese Administration of Industry and Commerce or its local offices,accredited with independent legal person status, authorized to handle contract
construction abroad; and qualified with expertise, professional knowledge and technology for such operations.
Application Requirements
1)The borrower shall demonstrate fine management and operation, have a sound financial status, favorable credit standing, and debt servicing capacity;
2)The borrower has already signed a contract for undertaking overseas construction projects, which,when necessary, shall be authorized by competent government authorities;
3)The spin-off exports of Chinese equipment, materials, technology, labor service, and management services that derive from overseas construction contracts shall account for no less than 15% of the total contract value of the project;
4)The value of the overseas construction contract shall be no less than USD 1 million, with down payment amounting to no less than 15% of the total contract value in principle. In the case of deferred repayment,a payment guarantee acceptable to the Bank shall be provided;
5)The overseas construction contract shall be able to generate satisfactory economic returns;
6)The contractor shall be licensed and capable of performing the deal sealed;
7)The host country shall remain politically and economically stable;
8)In the case where repayment is assessed as of high risk, appropriate export credit insurance shall be arranged as per the requirements of the Bank;
9)Repayment guarantee acceptable to the Bank shall be provided;
10)Other requirements that the Bank deems necessary. and technology for such operations.
Application Documents
1)Loan Application;
2)Engineering and construction contract and approval by competent government authorities (if required);
3)Purchase contract and other commercial contracts relevant to the construction project;
4)The analysis of economic returns and cash flow statements of the construction project;
5)A Letter of Intent for export credit insurance (if such an insurance is required);
6)The authorized permit for undertaking overseas construction contracts of the borrower, profile statements of both the borrower and the guarantor,duplicate copy of the business license of the borrower that has passed the annual examination, audited financial reports of the past three years and the recent audited financial statements of the current year, and other documents that demonstrate the credit standings and the operations of both the borrower and the guarantor;
7)A Letter of Intent for repayment guarantee, or in the case of mortgage or pledge, valid certificates of ownership of the property under mortgage or pledge and evaluation reports thereof; and
8)Other documents required by the Bank.
5. Loan to Overseas Investment Project
Loan to Overseas Investment Project refers to the loan, either in Renminbi or
foreign currencies, provided to Chinese companies to finance their overseas
investment projects.
The overseas investment projects in question refers to:
■Overseas resources exploration project; ■Overseas processing trade project that helps increase the export of Chinese equipment, technology and products;
■Overseas investment in setting up factories and infrastructure construction projects;
■Investment in setting up overseas research & development centers, product marketing & sales centers, and post-sales service centers for the purpose of upgrading the product development capacity and market competitiveness of Chinese manufacturers;
■Overseas acquisition, merger, or participation in share-holding ventures
that aims to develop international markets and sharpen competitiveness of
Chinese companies. Prospective Borrowers
Prospective borrowers include Chinese companies registered with Chinese Administration of Industry and Commerce or its local offices, and accredited with independent legal person status. Joint ventures controlled by Chinese companies who invest abroad (Greenfield investment, M&A, stock purchase, capital increment, re-investment, etc) can also apply for the Loan in the name of the participating Chinese company.
Application Requirements
1)The borrower shall demonstrate competent financial strength and reliable ministration capacity of handling and undertaking investment projects abroad, and shall have business experience in cooperation with foreign parties;
2)The total amount that the borrower plans to invest in the overseas investment project shall be no less than USD 1 million, and the portion ofself-raised capital shall normally be no less than 30% of the total amount;
3)The borrower has already signed a contract for the planned overseas investment project, which shall have been approved or authorized by competent government authorities of both China and the host country/region;
4)The planned overseas investment project shall get ready with all the supporting conditions,and shall have good economic estimates and sound debt servicing capacity;
5)The host country shall have a welcoming environment for foreign investors;
6)Projects associated with high country risk shall be covered by overseas investment insurance as per the requirement of the Bank;
7)A repayment guarantee acceptable to the Bank shall be provided, unless otherwise specified;
8)Other requirements that the Bank deems necessary. companies.
Application Procedure
1)The borrower shall submit its project proposal (including tendering proposal) and/or project feasibility study report to relevant government authority, and carbon copy to the Bank. In addition, a formal loan application shall be submitted to the Bank.
2)The government authority approves or pre-assesses the project proposal and carbon copy its approval documents to the Bank as reference for the latter's acceptance of loan application.
3)The Bank issues a letter of comment on project as a reference to the government authority for its approval or pre-assessment of the project feasibility study report.
4)The Bank shall formally process the loan application when the project feasibility report is approved (or filed). Application Documents
1)Loan Application;
2)Approval documents of the overseas investment project issued by competent government authorities of both China and the host country /region of the project;
3)The joint-venture agreement(s) on the overseas investment project, corporate charter of the invested joint venture, and other related contractsand arrangements;
4)Feasibility study report on the project;
5)A Letter of Intent on overseas investment insurance (if necessary);
6)Profile statements of both the borrower and the guarantor, duplicate copy of the business license of the borrower which has passed the annual examination, audited financial statements for the last three years and audited financial statements of the current year, other documents that demonstrate the credit standings and business performances of both the borrower and the guarantor, and other documents on the
invested company / venture registered overseas;
7)A Letter of Intent for Repayment Guarantee, or in the case of mortgage or pledge, valid certificates of ownership of the property under mortgage or pledge and evaluation reports thereof; and 8)Other documents deemed necessary by the Bank.
6. Export Seller's Credit for Agricultural Products
Export Seller's Credit for Agricultural Products refers to loans, denominated either in Renminbi or foreign currencies, provided to Chinese companies for their export of agricultural products.
Prospective Borrowers
Prospective borrowers include Chinese companies registered with Chinese Administration of Industry and Commerce or its local offices, accredited with independent legal person status, and authorized to export agricultural products.
Application Requirements
1)The borrower shall demonstrate sound management and financial strength with favorable credit standing, and shall be able to repay loan principal and pay interest incurred;
2)The export products shall be raw and processed agricultural products from China.
3)The borrower's yearly export volume of agricultural product shall exceed USD 1 million in principle;
4)A repayment guarantee or insurance acceptable to the Bank shall be provided;
5)Other requirements that the Bank deems necessary.
Application Documents
1)Loan Application;
2)Export license of the borrowers, profile statements of both the borrower and the guarantor, duplicate copy of the business license of the borrower that has passed the annual examination, audited financial statements for the last three years and audited financial statements of the current year,other documents that demonstrate the credit standings and business performance of both the borrower and the guarantor;
3)Statements and reports covering the export of agricultural products in the past three years by the borrower, export plans for the current year,together with export contracts already signed;
4)A Letter of Intent for Repayment Guarantee, or in the case of mortgage or pledge, valid certificates of ownership of the property under mortgage or pledge and evaluation reports thereof;
5)Other documents deemed necessary by the Bank.
7. Credit for Exporting Cultural Products and Services (including Animation)
Credit for Exporting Cultural Products and Services (including Animation)includes export seller's credit and export buyer's credit. Export seller's credit in this category refers to loans denominated either in RMB or foreign currencies provided to finance exports of cultural products and services by Chinese companies.
Buyer's credit refers to loans denominated either in RMB or foreign currencies provided to overseas borrowers to finance their imports of Chinese cultural products and services.
Prospective Borrowers
To apply for export seller's credit in this category, the borrower shall be a Chinese company accredited with independent legal person status and license of exporting cultural products and services and shall be registered with the Chinese Administration of Industry and Commerce or its local offices. To apply for export buyer's credit in this category, the borrower shall be an importer, a financial institution
of the importing country or a competent agency authorized by the importer's government that is acknowledged by the Bank,and the exporter shall be a Chinese company with independent legal entity,license of exporting cultural products and services, as well as contractperforming capabilities.
To apply for export buyer's credit, the following requirements need to be satisfied:
The economic and political situation of the borrower's country shall be stable;
The borrower shall have a sound credit standing and debt servicing capacity;
Exported cultural products and services shall be entries on the Guiding Catalog for Export of Cultural Products and Services promulgated by Chinese competent government authorities, or fit into the export of copyright of books,newspapers and magazines, electronic music-picture products, films and TV series, as well as overseas labor
cooperation conducted by cultural entities;
The borrower shall provide repayment guarantee acceptable to the Bank; Export credit insurance needs to be in place when required; Other requirements deemed necessary by the Bank.
Application Requirements
To apply for export seller's credit, the following requirements need to be satisfied:
1)The borrower shall demonstrate sound management and operation, strong financial position, favorable credit standing and good debt servicing capacity. Its credit rating determined by the Bank shall be above (including) A-;
2)Exported cultural products and services shall be entries on the Guiding Catalog for Export of Cultural Products and Services promulgated by competent government authorities, or fit into the export of copyright of books, newspapers and magazines, electronic music-picture products,films and TV series, as well as such undertakings as setting up overseas publishing house, broadcasting and television network, sales agencies of publication, purchasing overseas media time slots, opening up overseas broadcasting and television frequency channels and
overseas labor cooperation conducted by cultural entities;
3)Repayment guarantee acceptable to the Bank needs to be provided;
4)Other requirements deemed necessary by the Bank.
Application documents
To apply for export seller's credit, the following documents need to be provided:
1)Loan Application;
2)The borrower's license of exporting cultural products and services, profile statements of both the borrower and the guarantor, copy of the borrower's business license that has passed the annual examination, audited financial statements of the past three years and the latest audited financial statements of the current year,
and other documents that demonstrate the credit standings and operations of both the borrower and the guarantor;
3)Description of the borrower's export of cultural products and services over past three years, export plan of the current year and relevant commercial contracts and cooperation agreements;
4)Necessary approval and evidentiary documents by competent government authorities of both China and the importing country, together with project feasibility study report, project cash flow statements and economic return analysis;
5)Documents of intent on export credit insurance (if such an insurance is required);
6)A letter of intent for repayment guarantee, or in the case of mortgage or pledge, valid ownership certificates for the property under mortgage or pledge and evaluation reports shall be provided; and
7)Other documents deemed necessary by the Bank.
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