Facilitating Trade between Taiwan and the Philippines via

Facilitating Trade between Taiwan and the Philippines via Eximbank Jennifer Yeh Vice President & Deputy GM The Export-Import Bank of ROC Dec. 07, 2017 http: // www. eximbank. com. tw 1

Eximbank of the Republic of China Founded in 1979 100% Owned by government Specialized financial institution 2

New Southbound Policy 3

economic Financing Export Credit Insurance Guarantee Risks Management Eximbank trade financial policies 4

Financing Short-Term Export Credit - L/C, D/P, D/A, O/A Medium and Long-Term Export Credit Overseas Investment Credit 5

Guarantee Facilities Export Guarantee Import Guarantee Overseas Construction Guarantee 6

Export Credit Insurance -- L/C, D/P, D/A, O/A Medium and Long-Term Deferred Payment Export Credit Insurance Overseas Investment Insurance 7

What We Cover--Commercial Risks Export Credit Insurance • Buyer’s bankruptcy or insolvency • Buyer’s delayed payment (Protracted Default) • Buyer’s refusal to accept the goods Political Risks Export Credit Insurance Overseas Investment Insurance • Cancellation of export or import licenses and permits • Non-conversion of currency or inability to transfer funds • Loss incurred by war, revolution, riot, internal unrest or rebellion in the buyer’s country or area. 8

Relending Facility In Support of Importation from Taiwan 9

Eximbank extends a Revolving Line of Credit to overseas financial institutions（Relending Banks) for relending the importers’ purchasing from Taiwan. Relending Bank Eximbank Repay Importer Taiwan Exporter 10

Risk Sharing Scheme-Eximbank undertakes the repayment risk of the Relending Bank The Relending Bank undertakes the repayment risk of the importer 11

Terms and conditions 1. Eligible goods: goods sold by Taiwan exporters. 2. Currency: US dollars 3. Percentage of Financing: up to 100% of the transaction 4. Interest Rate: floating at 6 -M LIBOR plus a 12 margin

Terms and conditions 5. Tenor : up to 5 years 6. Repayment of Principal: • In one lump sum on the maturity date. • semi-annual installments (tenor >1 year) 7. Payment of Interest: interest paid every 613 months.

Benefits under Relending Facility Taiwan Exporters Foreign Importers • getting access to emerging markets • no extra burden on Balance Sheet • no repayment obligation after shipment • being able to obtain loans with lower interest rate • repayment of loans by installments Foreign Banks (Relending Banks) • favorable funding source • interest income 14

Relending Banks in Philippines BDO Unibank CTBC Bank Eximbank 15

The Relending Banks Worldwide 轉融資合作銀行全球分佈圖 BELARUS BULGARIA CZECH KAZAKHSTAN ARMENIA RUSSIA TURKEY USA INDIA CHILE INDONESIA COLOMBIA MONGOLIA DOMINICAN PHILIPPINES ECUADOR THAILAND EL SALVADOR VIETNAM QUATEMALA CAMBODIA MARSHALL ISLAND HONDURAS NICARAGUA PARAGUAY ＊68 banks in 25 countries – 30/11/2017 16

Thank You 17