Other businesses: Export Seller Crediting, Financing on Overseas Projects.

I. Introduction
On the condition that China Export Credit Insurance Company provides credit insurance and encourages enterprises to play on the global stage, ICBC can provide foreign importer or importer's bank with mid and long-term foreign exchange loan by means of payment for goods, technology or labor cost. The amount of export buyer credit is generally no more than 85% of the amount of export business contract or job contract. When certain conditions are satisfied, ICBC can also provide financing for 100% of the contract amount including a 15% commercial loan.

II. Business features
Export Buyer Credit is a kind of credit support offered by the bank to the trading of large machines and equipments or complete set of equipments and project contract, with the export credit insurance provided by China Export Credit Insurance Company. ICBC can meet the diversified needs of customers with the rich experiences in the field of project financing and airplane/ship financing.

III. Prospective clients
If foreign importer fails to make foreign currency cash payment to the Chinese exporter exporting goods to foreign countries, they can consider using the export buyer credit. Moreover, generally speaking, the exported goods are those that the state encourages to export and the export amount is over US$ 500,000. The proportion of the goods from China should generally be no less than 70%. In case of ship project the proportion should be no less than 50%.

IV. Operation process
1. Clients submit insurance application directly or through ICBC (i.e. the bank to provide export buyer credit) to China Export Credit Insurance Company and obtain a supportive letter of intent from the China Export Credit Insurance Company and letter of intent on financing from ICBC.
2. Clients sign commercial contract or engineering contract according to the requirements of China Export Credit Insurance Company. After winning the bid, ICBC provides the commitment letter that ICBC is trusted as the loan bank and submits the report related to the project. ICBC will review the project.
3. Submit the signed commercial contract to China Export Credit Insurance Company for approval and submit to ICBC for review at the same time.
4. After the commercial contract is approved by China Export Credit Insurance Company and reviewed by ICBC, ICBC will sign export buyer credit agreement with the foreign importer or its bank. And finally ICBC signs insurance agreement with China Export Credit Insurance Company.
5. The loan agreement will provide financing for the commercial contract and the project contract.

V. Notices
At the bidding stage of the project, clients should obtain the initial consent of the China Export Credit Insurance Company and take the export buyer credit as the financing scheme of the bidding. Meanwhile, it is suggested that clients keep close cooperation with the bank when staring the bidding since the export buyer credit is ultimately provided by the bank.

VI. FAQs
What are the competitive advantages of ICBC?
(1) ICBC has close business relations and cooperation with China Export Credit Insurance Company. At the end of 2003, ICBC signed cooperation agreements with China Export Credit Insurance Company to realize supplemented advantages, resources share, development and improvement of financial services on the basis of mutual benefit.

(2) ICBC has successful cases in Russia, Asia and Africa.

(3) ICBC has signed general agreement of export buyer credit with some foreign banks, which can obtain loan directly and conveniently of ICBC.

(4) ICBC can provide professional and efficient services by adopting a professional operation mode for export buyer's credit.

VII. Contact us
Banking Department of Industrial and Commercial Bank of China Head Office
Tel: (010) 66108420/7903/8433
Fax: (010) 66108429
E-mail: exportfinance@icbc.com.cn