Another loan program we offer is called Export Buyer’s Credit through our relationship with major Chinese policy banks. It can also be used for major construction projects.
The Export Buyer’s Credit refers to the medium and long-term credit offered by the Bank to creditworthy foreign borrowers to support the export of Chinese capital goods, services and overseas construction projects. With a competitive interest rate and a longer period of time, the Export Buyer’s Credit can facilitate foreign importers to make prompt payment to Chinese exporters for the exported products and services. The operations generally follow the Arrangement on Guidelines for Officially Supported Export Credits as developed by OECD.
The currency of the loan could be either US Dollar or other currencies acceptable to China Eximbank.
Generally, the Export Buyer’s Credit provided by the Bank for an export project of goods or services shall not exceed 85% of the total contract value. As for an overseas contracting project, the loan amount should follow the regulations of state relevant policies.
The maximum maturity period is 12 years from the date of the first disbursement of the loan to the last repayment date as stipulated in the loan agreement.
The interest rate could be either a fixed interest rate on the basis of the Commercial Interest Reference Rate (CIRR) as monthly announced by OECD, or a floating interest rate on the basis of London Interbank offered Rate (LIBOR) plus a certain interest rate spread. For special cases, the interest rate could be negotiated and decided between the lender and the borrower.
Drawdown of the Loan
The availability of drawdown under the loan agreement shall be consistent with the terms and conditions of the commercial contract related.
For more information on the loan programs available, please contact us at [email protected].