China
The Export-Import Bank of the United States (Ex-Im Bank) provides U.S.
exporters and their international buyers with the financing tools they need
to successfully buy U.S. products and services. Ex-Im Bank support protects
against foreign political and commercial risk, and gives U.S. exporters the
ability to offer competitive financing to their buyers through export credit
insurance and loan guarantees.
Chinese Buyers: Buy More U.S. Goods and Services
with Competitive Financing
The Bank supports many industries for both
private- and public-sectors. In particular, the
agency provides loan guarantees to lenders
that offer Chinese buyers with competitive
financing to purchase U.S. capital goods (such
as trucks, construction equipment, laundry
equipment, food processing machinery,
kitchen equipment) and services such as
engineering or legal fees. This access to capital
typically includes longer repayment terms and
lower costs of financing for the buyer.
Long-term guarantees are available for major
projects, large capital goods and/or projectrelated
services such as power generation
facilities, or refinery projects.
Ex-Im Bank also offers credit insurance to
U.S. exporters and lenders against the political
and commercial risks of a foreign buyer
defaulting on payment. This policy thereby
allows a U.S. exporter to extend credit terms
to its buyer.
The seller – a U.S. firm – needs to provide
Ex-Im Bank with information on the
creditworthiness of the buyer and the U.S.
content of the product(s). As one can expect,
the Bank's credit standards depend on the
amount being financed and the length of
time involved.
Short-Term: Up to one year repayment terms
Export-Credit Insurance
Export credit insurance enables
U.S. exporters to extend U.S. dollar
credit directly to Chinese buyers. The
insurance supports the sale of U.S.
goods and services, including raw
materials, semi-manufactured, and
finished goods. Of note, the application
must come from a U.S. exporter.
Benefits:
-
Open account credit is an attractive
substitute to letters of credit and
bank financing
- Lower interest charges, as credit is
often arranged directly through the
U.S. exporter or a lender
- Available for purchases of bulk
commodities, consumer goods, spare
parts, etc.
Medium-Term: Typically up to five years
repayment and under $10 million
Export-Credit Insurance and
Guarantees of Commercial Loans
Ex-Im Bank's medium-term insurance
and loan guarantees support the
purchase of U.S. goods and services by
Chinese buyers. The buyer is required to make a down payment of at least
15 percent. Ex-Im Bank guarantees
or insures 100 percent of the financed
amount, covering nonpayment due to
commercial or political risks.
Benefits:
- Quick turnaround
- Covers both capital goods and services
- Lower financing costs with
negotiated interest rates
- Covers both principal and interest
Long-Term
More than 10 years repayment or over $10 million Guarantees of Commercial Loans
With Ex-Im Bank's guarantee,
Chinese buyers of U.S. goods and
services are able to obtain attractive
financing terms. This is critical for U.S.
companies to achieve export success in
the Chinese marketplace.
Benefits:
-
Extended repayment terms depend on
the project but could be up to 12 years
for conventional power and up to 18
years for renewable-energy power
- Negotiable interest rates with fixed
interest-rate options
- Tailored principal repayment
profiles available
Sovereign Guaranteed Transactions
A Framework Agreement signed in
2005 between Ex-Im Bank and China's
Ministry of Finance governs the
procedures for arranging Ex-Im Bank
medium term and long term financing
on sales to Chinese buyers eligible to
receive a sovereign guarantee.
The Sovereign Loan Program was
designed to help boost exports of
advanced technology and equipment
from the U.S. to China, while
strengthening economic and trade ties
between the two countries.
The program features key advantages:
- A waiver of import duties and VAT
for projects that include at least 50
percent U.S .exports or where the
Ex-Im Bank guarantee is for at least
50 percent of the contract value
- A clear set of procedures to facilitate the
approvals process for Chinese buyers
- A pre-negotiated form of Master
Guarantee Agreement to streamline
documentation
The Sovereign Loan Program has been
used to help finance a wide range
of exports to China, ranging from
renewable energy, medical equipment,
and environmental products to
transportation, telecommunications,
and other infrastructure equipment.
Aircraft Finance
Ex-Im Bank supports Chinese buyers
of U.S. new and used commercial and
general aviation aircraft through loan
guarantees and insurance for both
large and small commercial aircraft.
Ex-Im Bank can also finance spare
parts, ground equipment, training
costs and transaction expenses.
Structured and Project Finance
Ex-Im Bank offers a range of financing
solutions for Chinese customers. Project
(limited-recourse) and structured financing
are two options that offer maximum
flexibility for project sponsors in natural
resource and infrastructure sectors. For
major transactions with significant equity,
project financing allows Ex-Im Bank to
lend to newly created companies with
the project's future cash flows as the
source of repayment. Through structured
finance, Ex-Im Bank can consider existing
Chinese company borrowers based on
their creditworthiness as reflected on their
balance sheet and additional sources of
collateral or security enhancements.
Medical, Environmental and
Transportation Security Initiatives
Ex-Im Bank provides enhanced
support for medical equipment
exports, exports that benefit the
environment and exports related to
international transportation security.
Benefits include extended repayment
terms (up to 18 years for renewableenergy
and water projects) and
coverage of local costs for up to 30
percent of the U.S. contract value.
Renewable Express
Renewable Express helps Chinese
buyers of U.S. clean energy
equipment, technology and services
by providing streamlined financing
for small clean-energy projects. Ex-
Im Bank can process transactions of
between $3 million to $10 million in
as few as 60 days.
Credit Requirements
For sovereign transactions, Ex-Im
Bank will typically require a Ministry
of Finance (MOF) Guarantee.
For public sector, non-sovereign
and private sector borrowers under
medium- and long-term programs,
Ex-Im Bank will consider transactions
with financial institutions or other
entities that are able to provide
satisfactory financial information.
For transactions with public sector,
non-sovereign buyers under shortterm
insurance policies, the use
of Discretionary Credit Limits is
typically limited to obligations of one
of the following: Bank of China,
China Development Bank, China
Construction Bank, Industrial and
Commercial Bank of China, Bank of
Communications.
For private sector transactions,
coverage must be specified under
a Special Buyer Credit Limit
endorsement or an Issuing Bank
Credit Limit endorsement.
Success Stories
China Merchants Bank Co., Ltd
China Merchants Bank Co., Ltd. was approved by Ex-Im Bank for a $200
million line of credit for the purchase of soybeans from U.S. suppliers.
The Bank has approved this credit limit to accommodate requests from
CoBank, Acb, and Toronto Dominion Bank for issuing bank credit limits.
The structure of this facility provides lower cost financing for China's
agricultural buyers. Following the approval of this deal, CoBank expects
significant demand for affordable soybean purchases as it works closely
with China Merchants Bank on offering financing for its customers.
Xinjian Agricultural Cultivation Group
Ex-Im Bank financing has supported a series of four contracts for the sale
of cotton harvesting equipment by Case New Holland (CNH) to a Beijingbased
company, Xinjian Agricultural Cultivation Group, totaling over $92
million. These sales cover the first 330 units in a multi-purchase plan
by the Group to acquire 450 cotton harvesting machines. The contracts
cover the machines, spare parts, transportation, training and related
services. The machinery will be used at the Group's farms in northwest
China to harvest cotton, which will then be sold in the China market.
Ministry of Railways (MOR)
An initial contract for the purchase of $87.2 million in railway track inspection equipment
and supporting services was financed under an Ex-Im Bank Loan guarantee and led to
follow-on business that qualified under the Sovereign Loan Program.
The initial order from Harsco Corporation of South Carolina, Sperry Rail, Inc. of
Connecticut, and ImageMap, Inc. of Illinois, provided rail grinding trains and
equipment, rail flaw detection cars, and track inspection cars, as well as training and
services. This transaction was part of the MOR's implementation of the "Permanent
Way Equipment Project" – a five year plan to modernize the rails to meet international
standards in three railway bureaus (Shenyang, Shanghai and Guangzhou). Guaranteed
lenders were HSBC and Deutsche Bank. The borrower was China Construction Bank.
The follow-on order was for $120 million, authorized for Ex-Im Bank guarantee
in January 2008. In this case, the guaranteed lender was JP Morgan and the
borrower was China Construction bank.
For additional questions or information, please contact
Ex-Im Bank Business Development Staff
Mr. James Lewis
James.Lewis@exim.gov
202-565-3716
US Commercial Service office in China
English
http://www.buyusa.gov
Chinese
http://www.buyusa.gov
Embassy of the United States in China
English
http://beijing.usembassy-china.org.cn/
Embassy of Indonesia in the United States
http://www.china-embassy.org/eng/
The Export-Import Bank of the United States (Ex-Im Bank) provides U.S. exporters and their international buyers with the financing tools they need to successfully buy U.S. products and services. Ex-Im Bank support protects against foreign political and commercial risk, and gives U.S. exporters the ability to offer competitive financing to their buyers through export credit insurance and loan guarantees.
Chinese Buyers: Buy More U.S. Goods and Services
with Competitive Financing
The Bank supports many industries for both
private- and public-sectors. In particular, the
agency provides loan guarantees to lenders
that offer Chinese buyers with competitive
financing to purchase U.S. capital goods (such
as trucks, construction equipment, laundry
equipment, food processing machinery,
kitchen equipment) and services such as
engineering or legal fees. This access to capital
typically includes longer repayment terms and
lower costs of financing for the buyer.
Long-term guarantees are available for major
projects, large capital goods and/or projectrelated
services such as power generation
facilities, or refinery projects.
Ex-Im Bank also offers credit insurance to
U.S. exporters and lenders against the political
and commercial risks of a foreign buyer
defaulting on payment. This policy thereby
allows a U.S. exporter to extend credit terms
to its buyer.
The seller – a U.S. firm – needs to provide
Ex-Im Bank with information on the
creditworthiness of the buyer and the U.S.
content of the product(s). As one can expect,
the Bank's credit standards depend on the
amount being financed and the length of
time involved.
Short-Term: Up to one year repayment terms
Export-Credit Insurance
Export credit insurance enables
U.S. exporters to extend U.S. dollar
credit directly to Chinese buyers. The
insurance supports the sale of U.S.
goods and services, including raw
materials, semi-manufactured, and
finished goods. Of note, the application
must come from a U.S. exporter.
Benefits:
- Open account credit is an attractive substitute to letters of credit and bank financing
- Lower interest charges, as credit is often arranged directly through the U.S. exporter or a lender
- Available for purchases of bulk commodities, consumer goods, spare parts, etc.
Medium-Term: Typically up to five years
repayment and under $10 million
Export-Credit Insurance and
Guarantees of Commercial Loans
Ex-Im Bank's medium-term insurance
and loan guarantees support the
purchase of U.S. goods and services by
Chinese buyers. The buyer is required to make a down payment of at least
15 percent. Ex-Im Bank guarantees
or insures 100 percent of the financed
amount, covering nonpayment due to
commercial or political risks.
Benefits:
- Quick turnaround
- Covers both capital goods and services
- Lower financing costs with negotiated interest rates
- Covers both principal and interest
Long-Term
More than 10 years repayment or over $10 million Guarantees of Commercial Loans
With Ex-Im Bank's guarantee,
Chinese buyers of U.S. goods and
services are able to obtain attractive
financing terms. This is critical for U.S.
companies to achieve export success in
the Chinese marketplace.
Benefits:
- Extended repayment terms depend on the project but could be up to 12 years for conventional power and up to 18 years for renewable-energy power
- Negotiable interest rates with fixed interest-rate options
- Tailored principal repayment profiles available
Sovereign Guaranteed Transactions
A Framework Agreement signed in
2005 between Ex-Im Bank and China's
Ministry of Finance governs the
procedures for arranging Ex-Im Bank
medium term and long term financing
on sales to Chinese buyers eligible to
receive a sovereign guarantee.
The Sovereign Loan Program was
designed to help boost exports of
advanced technology and equipment
from the U.S. to China, while
strengthening economic and trade ties
between the two countries.
The program features key advantages:
- A waiver of import duties and VAT for projects that include at least 50 percent U.S .exports or where the Ex-Im Bank guarantee is for at least 50 percent of the contract value
- A clear set of procedures to facilitate the approvals process for Chinese buyers
- A pre-negotiated form of Master Guarantee Agreement to streamline documentation
The Sovereign Loan Program has been used to help finance a wide range of exports to China, ranging from renewable energy, medical equipment, and environmental products to transportation, telecommunications, and other infrastructure equipment.
Aircraft Finance
Ex-Im Bank supports Chinese buyers
of U.S. new and used commercial and
general aviation aircraft through loan
guarantees and insurance for both
large and small commercial aircraft.
Ex-Im Bank can also finance spare
parts, ground equipment, training
costs and transaction expenses.
Structured and Project Finance
Ex-Im Bank offers a range of financing
solutions for Chinese customers. Project
(limited-recourse) and structured financing
are two options that offer maximum
flexibility for project sponsors in natural
resource and infrastructure sectors. For
major transactions with significant equity,
project financing allows Ex-Im Bank to
lend to newly created companies with
the project's future cash flows as the
source of repayment. Through structured
finance, Ex-Im Bank can consider existing
Chinese company borrowers based on
their creditworthiness as reflected on their
balance sheet and additional sources of
collateral or security enhancements.
Medical, Environmental and
Transportation Security Initiatives
Ex-Im Bank provides enhanced
support for medical equipment
exports, exports that benefit the
environment and exports related to
international transportation security.
Benefits include extended repayment
terms (up to 18 years for renewableenergy
and water projects) and
coverage of local costs for up to 30
percent of the U.S. contract value.
Renewable Express
Renewable Express helps Chinese
buyers of U.S. clean energy
equipment, technology and services
by providing streamlined financing
for small clean-energy projects. Ex-
Im Bank can process transactions of
between $3 million to $10 million in
as few as 60 days.
Credit Requirements
For sovereign transactions, Ex-Im
Bank will typically require a Ministry
of Finance (MOF) Guarantee.
For public sector, non-sovereign
and private sector borrowers under
medium- and long-term programs,
Ex-Im Bank will consider transactions
with financial institutions or other
entities that are able to provide
satisfactory financial information.
For transactions with public sector,
non-sovereign buyers under shortterm
insurance policies, the use
of Discretionary Credit Limits is
typically limited to obligations of one
of the following: Bank of China,
China Development Bank, China
Construction Bank, Industrial and
Commercial Bank of China, Bank of
Communications.
For private sector transactions,
coverage must be specified under
a Special Buyer Credit Limit
endorsement or an Issuing Bank
Credit Limit endorsement.
Success Stories
China Merchants Bank Co., Ltd
China Merchants Bank Co., Ltd. was approved by Ex-Im Bank for a $200
million line of credit for the purchase of soybeans from U.S. suppliers.
The Bank has approved this credit limit to accommodate requests from
CoBank, Acb, and Toronto Dominion Bank for issuing bank credit limits.
The structure of this facility provides lower cost financing for China's
agricultural buyers. Following the approval of this deal, CoBank expects
significant demand for affordable soybean purchases as it works closely
with China Merchants Bank on offering financing for its customers.
Xinjian Agricultural Cultivation Group
Ex-Im Bank financing has supported a series of four contracts for the sale
of cotton harvesting equipment by Case New Holland (CNH) to a Beijingbased
company, Xinjian Agricultural Cultivation Group, totaling over $92
million. These sales cover the first 330 units in a multi-purchase plan
by the Group to acquire 450 cotton harvesting machines. The contracts
cover the machines, spare parts, transportation, training and related
services. The machinery will be used at the Group's farms in northwest
China to harvest cotton, which will then be sold in the China market.
Ministry of Railways (MOR)
An initial contract for the purchase of $87.2 million in railway track inspection equipment
and supporting services was financed under an Ex-Im Bank Loan guarantee and led to
follow-on business that qualified under the Sovereign Loan Program.
The initial order from Harsco Corporation of South Carolina, Sperry Rail, Inc. of
Connecticut, and ImageMap, Inc. of Illinois, provided rail grinding trains and
equipment, rail flaw detection cars, and track inspection cars, as well as training and
services. This transaction was part of the MOR's implementation of the "Permanent
Way Equipment Project" – a five year plan to modernize the rails to meet international
standards in three railway bureaus (Shenyang, Shanghai and Guangzhou). Guaranteed
lenders were HSBC and Deutsche Bank. The borrower was China Construction Bank.
The follow-on order was for $120 million, authorized for Ex-Im Bank guarantee
in January 2008. In this case, the guaranteed lender was JP Morgan and the
borrower was China Construction bank.
For additional questions or information, please contact
Ex-Im Bank Business Development Staff
Mr. James Lewis
James.Lewis@exim.gov
202-565-3716
US Commercial Service office in China
English
http://www.buyusa.gov
Chinese
http://www.buyusa.gov
Embassy of the United States in China
English
http://beijing.usembassy-china.org.cn/
Embassy of Indonesia in the United States
http://www.china-embassy.org/eng/