How to Make Use of Taiwan Eximbanks Relending

How to Make Use of Taiwan Eximbank’s Relending Facility to Promote the Trade between Mongolia and Taiwan By : Robert R. F. Chu, President, Taiwan Eximbank

EXIMBANK IN TAIWAN A government–owned export credit agency, founded in 1979 , according to the Export-Import Bank of the R. O. C Act. The bank’s capital is NT$12 Billion(US$400 Million), appropriated by the National Treasury and under the supervision of Ministry of Finance. . 2

EXIMBANK IN TAIWAN Eximbank specializes in the export credit and insurance business. Based upon the government’s economic and trade policies, Eximbank assists Taiwanese enterprises in exploiting their foreign trade and overseas investment. 3

Credit Rating On Par with the government of the Republic of China from Fitch Ratings Long-Term Foreign Currency IDR：A+ 2. Short- Term Foreign Currency IDR：F 1 3. National Long-Term Rating：AAA(twn) 4. National Short-Term Rating：F 1+(twn) 1. 4

Main Business Items Credit Services Guarantee Services Export Credit Insurance Relending Facility 5

Outline of the Relending Facility • A revolving line of credit from Eximbank to a foreign bank. • The foreign bank makes a loan to their clients for importing goods from Taiwan. • Reimbursement of funds from Eximbank to the foreign bank after delivery of goods by Taiwan exporter. • Repayment by the foreign bank to Eximbank. 6

Outline of the Relending Facility Risk sharing scheme-Eximbank undertakes the repayment risk of the foreign bank The foreign bank undertakes the repayment risk of the importer 7

Relending Banks Eximbank has cooperated with 42 banks in 20 countries up to April, 2012. 8

Financing Terms and Conditions 1. Eligible goods: exported from Taiwan 2. Currency: US dollars 3. Percentage of Financing: up to 85% -100% of the transaction 4. Interest Rate: floating at 6 - month LIBOR plus a margin 9

Financing Terms and Conditions 5. Tenor : consumer goods: from 6 months up to 1 year non-consumer goods: 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 6 months 10

Procedures -Actual Utilization 11

1. application for a line of credit Relending Bank 6. request for disbursement Eximbank 7 repayment 3 application 8. repayment 4. i ssu e L /C Exporter Importer contract 5 negotiation 2. sales Commercial Bank 12

Step 1 Application for a Line of Credit Under Relending Facility application Eximbank Relending Bank sending Relending Facility Agreement for countersignature 13

Step 2 sales contract importer 14 exporter

Step 3 Relending Bank Loan Application Importer 15

Step 4 Sight L/C Relending Bank Exporter Negotiation of Shipping Documents Proceeds Shipping Documents Commercial Bank 16

Step 5 Request for Disbursement Relending Bank Eximbank Disbursement 17

Step 6 Repayment Relending Bank Repayment Importer 18 Eximbank

Disbursement Procedure Consditions Precedent the Legal Opinion the Appointment & Acceptance Letter of Process Agent authority and specimen signatures book 19

Disbursement Procedure Request for Disbursement 1. Submit a Request for Disbursement 2. All supporting documents a. Non-negotiable Bill(s) of Lading or Airway Bill(s). b. Commercial Invoice(s) c. Exporter's Certificate d. A brief description of your client’s history and business activities. 20

Benefits under Relending Facility Taiwan Exporters • getting access to emerging markets • no extra burden on Balance Sheet • no repayment obligation after shipment 21 Foreign Importers • being able to obtain loans with lower interest rate • repayment of loans by installments Foreign Banks (Relending Banks) • favorable funding source • interest income

Relending Banks in Mongolia TDB Khan Bank LLC State Bank of Mongolia Eximban k 22

Thank You ! To Contact Department of Finance：TEL 886 -2 -2397 -1505 E-mail： rfloan@eximbank. com. tw Web: http: //www. eximbank. com. tw