1、BOCs Practice in Export Buyers Credit,Corporate Banking Dept. Bank of China Zhejiang Branch,June, 2011,Agenda,Snapshot of Bank of China,3,established in 1912, served as the central bank originally one of the biggest commercial banks in China the most international and diversified bank in China: thou

2、sands of subsidiaries and branch in 31 countries and regions,Financial Highlights of BOC in 2010,Assets scale exceeded RMB 10 trillion Net profit reached RMB 109.7 billion, up 28.52% year on year ROE and ROA increased to 18.87% and 1.14%, respectively Net interest margin reached 2.07% Non-interest i

3、ncome of RMB 82.6 billion, increased by 12.03% compared to the prior year At the end of 2010, capital adequacy ratio was 12.58% and its core capital adequacy ratio was 10.09%,Awards,The Banker: 2009 Ranked 3 among the top 1000 World Banks, ranked 11 based on Tier 1 Capital Euromoney: Best Bank in Ch

4、ina for 8 years successively 21Century Business Herald: 2009 Best Corporate Banking in Asia CBN: 2009 Corporate Banking BrandGlobal Corporate Banking The Asset: 2008 Triple A Transaction Banking Awards; Best Trade Finance Bank China Finance Asia: 2008 Best Trade Finance Bank in China Global Finance:

5、 2007 Best Trade Finance Bank in China,5,Agenda,Introduction,Export buyers credit is a medium-and-long-term financing facility provided by exporters bank and supported by exporters home government to the importer or its banks, with the purpose of promoting the export of capital goods and services su

6、ch as homebred mechanical and electrical products, complete equipment and overseas contracted engineering projects.,Principles,Supported by the exporters government. Support the foreign importer purchasing Chinese equipments, construction services from China.,Application Qualifications,Financing pro

7、portion,Minimum Financing Amount,Chinese Content,Term,Others,The proportion of spot payment in cash currency to complete equipment contract value should be no less than 15%,The aggregate amount of commercial contracts should be no less than USD 1 million,Chinese Content: 60%,Up to 15 years（exclude a

8、vailability period）,Export credit insurance underwritten by Sinosure ( Export Credit Agency in China),Processing,Key steps: Importer and exporter reach a preliminary intent of deal Bank of China and Sinosure evaluate the project and issue Letter of Interest Financial Proposal (Term Sheet) Bank of Ch

9、ina negotiates terms and conditions with Importer Importer sends Mandate Letter to BOC Liaising lawyer to prepare Documents Signing Ceremony,8 Announce the Info. of Loan,9 Loss Settlement,7 Repayment,Exporter,Importer,Bank of China,SINOSURE,1 Commercial Contract,5 Delivery,3 SINOSURE Insurance,6.2 D

10、rawing,6.1 Drawdown Notice,Agreement or Contract :,Logistics :,Cash flow :,Info. Flow:,4 Insurance Premium Payment,SINOSURE,SINOSURE is mandated, in accordance with the Chinese governments diplomatic, international trade, industrial, fiscal and financial policies, to promote Chinese exports and inve

11、stments. SINOSURE gets involved to insure the principle and estimated interest when borrower fails to repay,China Export & Credit Insurance Corporation (SINOSURE) is Chinas only policy-oriented insurance company specializing in export credit insurance. It began operations on December 18, 2001, with

12、capital coming from the Export Credit Insurance Risk Fund as arranged by the State fiscal budget. SINOSURE has formed a nationwide service network.,General Terms and Conditions,Loan Amount: up to 85% of the Commercial contract Tenor: up to 10-12 years (repayment period) Interest: 3M or 6M Libor plus

13、 margin Fees: upfront fee, commitment fee, agency fee Repayment: quarterly or semi-annually repayment Covenants: e.g. Minimum book value of equity ECA Insurance: SINOSURE Export Insurance,Why choose BOC?,Competitive interest rate with flexible financing structure A series of financial services along

14、 with Export Credit Fast internal processing Oversea branches could provide convenient services as the account bank Long-term relationship with famous law firms, which specialize in shipping finance: Watson, Farley & Williams, Stephenson Harwood,In 1988, our bank accomplished the first export buyers

15、 credit in China. Before the establishment of the Export-Import Bank of China in 1994, our bank is the only bank authorized by the government to conduct this business. Our bank had conducted 28 projects of export buyers credit for 15 developing countries in Asia, Africa, Latin America and Eastern Eu

16、rope. As special and competitive product of our bank, Export buyers credit not only effectively supports customers to go abroad but also brings us large amount of rewards and sound international prestige.,13,Leading Bank in Export Credit,The first commercial bank that carried out the export buyers c

17、redit business in China. With 20 years practical experience. According to Chinese State Council: By the end of 2010, Chinese State Council has approved 82 “421” projects with a total financing amount USD 25.8 billion. BOC accounts for USD 5.4 billion of it, which is far more than other commercial ba

18、nks. According to SINOSURE: By the end of 2010, among the 65 “421” projects with a total worth of USD 20.7 billion for which SINOSURE has issued insurance policy, BOC accounts for USD 3.1 billion and ranks the top among all commercial banks.,Professional teams,BOC: Professional EBC team, provides professional technical support.,One stop financial services,Apart from export buyers credit, we can offer other value added services with the support of our international network and financial products, such as forward transactions and so on