Export buyer's credit..

5. The following requirements shall be satisfied when applying for Export Buyer's Credit:
1).The economic and political environment of the borrower's country should be stable; 2).The borrower should demonstrate sound credit standing and good debt servicing capacity; 3).The value of the commercial contract shall exceed USD 2 million, and the export project shall fall into the financing area of this credit; 4).The Chinese content of export products should be no less than 50% of the total contract value. For the overseas contracting projects, no less than 15% of the project shall come from the export of Chinese equipment,construction mechanics, materials, engineering work, technical and managerial expertise, and labor services; 5).The borrower shall provide a repayment guarantee acceptable to the Bank; 6).Export credit insurance shall be required; 7).Other requirements the Bank deems necessary.
6. Terms and Conditions: 1).Currency The currency of the loan could be US Dollar or other foreign currencies acceptable to the Bank. The Bank can also provide RMB-denominated export buyer's credit according to relevant rules and regulations. 2).Financing Amount Credit for ship exports shall not exceed 80% of the total contractual value,and credit for other exports and overseas contracting projects and other export projects shall not exceed 85% of the total contractual value, 3).Maturity The tenor shall be calculated on the cash flows projection of each project.The maximum tenor, starting from the date of the first drawdown till the last repayment date, shall not exceed 15 years inprinciple. Within the repayment period, the borrower shall repay semiannually in equal installments unless otherwise specified. 4). Interest Rate The interest rate of foreign currency-denominated credit could be either a fixed or floating interest rate in accordance with relevant rules and regulations of the Bank. The interest rate of RMB-denominated credit shall follow relevant rules and regulations. 5). Fees Chinese bank will charge management fees, commitment fees and other fees relevant to the loan. For projects not covered or partially covered by export credit insurance, the Bank will charge exposure fees on the exposed part of the loan. Rates for individual projects are decided in accordance with relevant rules and regulations of the Bank.
3. Buyer's credit process
Seller
5. Advance Payment
1.Contract
7. Loan Disbursement 6. Good Delivery 4. Export credit insurance Sinosure(China Export and Credit Insurance Corp)
Chinese Bank
2.Loan Contract 8.Re(Borrower)
3. Repayment Guarantee
Guarantor (Buy`s Parent Company or Buyer`s Commerical Bank)
4. Application Requirements: The borrower can be a foreign importer (project owner), a foreign financial institution, or the Ministry of Finance or other authorized institutions of the importing country, which are acceptable to the Bank.The exporter should be an independent legal entity with export license and the ability to perform commercial contracts. To apply for export buyer's credit, the following documents need to be provided: 1)Loan Application; 2)Draft commercial contract, letter of intent and other contractual documents; 3)Necessary project feasibility study report; (contains: Geological exploration,Environmentaprotection, Construction period, Return on investment, ect.) 4)Necessary approval and evidentiary documents provided by competent government authorities of both China and the importing country; 5)Documents that demonstrate the credit standings and operations of the borrower, the guarantor, the importer and the exporter, as well as audited financial statements of the borrower and the guarantor (excluding government authorities) over the past three years; 6)For RMB-denominated export buyer's credit, application for opening bank settlement account and relevant evidentiary documents need to be provided; 7)In the case of mortgage or pledge, valid ownership certificates for the property under mortgage or pledge and evaluation reports need to be provided; and 8)Documents of intent onSinosure credit insurance; 9)Other documents deemed necessary by the Bank.
7. Loan Application and Approval The following documents shall be provided: 1).Loan application letter; 2).Draft commercial contract, letter of intent, tendering and bidding documents; 3).Feasibility study report of the project; 4).Relevant approval documents from Chinese government authorities and the host country of the project; 5).Documents that demonstrate the credit standing of the borrower, the guarantor, the importer (or project owner), and the exporter (or contractor);financial statements of the borrower and the guarantor (government agencies excluded); 6).For RMB-denominated export buyer's credit, application for opening bank settlement account and relevant documents shall be provided; 7).In the case of mortgage or pledge, ownership certificates and necessary evaluation reports thereof shall be submitted; 8).Other documents the Bank deems necessary. China Eximbank will examine, in accordance with regulated procedures, the application documents submitted by the borrower,negotiate with the borrower on the terms and onditions, and complete the loan approval procedure. For large-size contracting projects, manufacturing projects or projects with omplicated structure, external professionals or agencies could be employed for consultation and demonstration and due diligence investigation.