The information and materials contained in this document are subject to change. Unauthorized use of EXIM Bank logo, name and copyrights are strictly prohibited. Not all products and services are available in all geographical areas. Whilst every effort has been made to ensure accuracy of the information contained herein, EXIM Bank cannot be held responsible for any inaccuracies, delays or omissions in information provided herein given the varied nature of risks, laws, rules and regulations in which EXIM Bank ventures into.
About Exim Bank Shareholder Ministry of Finance Inc., Malaysia (100%) Incorporation date 29 th August 1995 Paid-up Capital Current Staff Strength 260 Offices Mandate Business Coverage Global Coverage RM2.7 billion (USD879 million) HQ in Kuala Lumpur Rep. Offices in Penang & Johor Bahru To facilitate Malaysia s exports Banking & Export Credit Insurance Business transactions & facilities for customers in 91 countries across 5 continents 2
What do we do? n We help dynamic M sian cos. to overcome financial barriers & risk when growing their businesses internationally. n We do it via our finance, guarantee & insurance scheme. 3
Capex Financing Fixed assets @ Purchase of Equipment & Machineries Working Capital Purchase of materials Bonds & Guarantees Tender/ Bid Bonds Development/ Construction cost Overheads Advance Payment Bond Land & Buildings Payment for sub contractors Performance and Warranty Bonds 4
Insurance against losses/ non payment arising from commercial and/or political risks while undertaking export activities & project or contract in foreign countries. Commercial Risks Political / Country Risks Credit Insurance Coverage
Focus of the Day n Buyer Credit (trade & project). n ADB Exim Trade Finance Program. n Supplier Credit. n Overseas Project Financing 6
Buyer Credit Import financing to foreign buyers for purchasing goods & services from Malaysia eg. Indonesia, Vietnam, UAE. Financing is disbursed to Malaysian suppliers. Repayment is by the foreign buyers. Alternatively, lending is to foreign bank for on-lending to foreign cos. eg. ICICI & YES Bank of India. 7
Terms & Conditions n <100% of purchase price. n Tenor: < 1 year (trade), as required (project). n Currency: USD or other applicable currencies. n Security: SBLC or Govt. guarantee 8
Benefits n Importers may access to low borrowing cost in Malaysia. n Improve procurement process as LC need not be issued on repeat basis like before. n M sian cos. can export with absolute confidence. n Powerful marketing tool for M sian exporters. 9
n Joint initiative between ADB & Exim Bank to promote Malaysia s trade with Asia s emerging economies. n Exim Bank is able to guarantee payment (by confirming LCs) of 79 participating banks from 16 emerging Asian countries. 10
Countries & no. of banks involved Afghanistan (1) Mongolia (4) Armenia (6) Nepal (8) Azerbaijan (5) Pakistan (13) Bangladesh (14) Philippines (4) Bhutan (1) Sri Lanka (4) Cambodia (1) Tajikistan (1) Georgia (2) Uzbekistan (3) Indonesia (2) Vietnam (10)
PAKISTAN BANGLADESH 1. Askari Bank Ltd 1. Asia Bank Ltd 13. United Commercial Bank Ltd 2. Allied Bank Ltd 2. Bank Asia Ltd 14. National Credit & Commerce 3. Bank Al Habib Ltd 3. Basic Bank Ltd 4. Bank Alfalah Ltd 4. Dhaka Bank Ltd 5. Faysal Bank Ltd 5. Dutch Bangla Bank Ltd 6. Habib Bank Ltd 6. Eastern Bank Ltd 7. MCB Bank Ltd 7. Standard Bank Ltd 8. Meezan Bank Ltd 8. Export Import Bank Bangladesh Ltd 9. National Bank of Pakistan 9. National Bank Ltd 10.NIB Bank Ltd 11.Soneri Bank Ltd 12.Habib Metropolitan Bank Ltd 10.Premier Bank Ltd 11.Prime Bank Ltd 12.South East Bank Ltd 12
SRI LANKA VIET NAM 1. Bank of Ceylon 1. Asia Commercial Bank 2. DFCC Vardhana Bank Ltd 2. Bank for Investment and Development of Vietnam 3. National Development Bank PLC 3. Hanoi Building Commercial Joint Stock Bank 4. Nation s Trust Bank PLC 4. Military Commercial Joint Stock Bank MONGOLIA 5. Saigon Thuong Tin Bank* 1. Golomt Bank 6. Vietnam Bank for Agriculture and Rural Development 2. Khan Bank 7. Vietnam Export Import Commercial Joint Stock Bank 3. Trade and Development Bank of Mongolia 8. Vietnam International Commercial Joint Stock Bank 4. XacBank 9. Vietnam Joint Stock Commercial Bank for Industry and Trade 10.Vietnam Technological and Commercial Joint Stock Bank 13
Supplier Credit Facility n For Malaysian manufacturing & trading cos. n Short term trade financing for exports of Malaysian manufactured goods & commodities. 14
Type of Financing (a) Pre-Shipment Financing Purchase of raw materials, finished goods & overhead expenses prior to shipment. Note: Financing of overhead expenses is for manufacturers only. (b) Post-shipment Financing To finance receivable i.e. to enable exporters to sell on credit. Note: Subject to no discrepancies on the Export Documents, exporters can obtain immediate funds upon presentation of Export Documents after shipment. 15
Margin & Period Of Financing Pre Shipment Manufacturer < 85% of export order. Trader < 90% of export order. <120 days Post Shipment < 100% of export value <180 days 16
Overseas Project Financing n To support Malaysian cos. investing in commercial activities abroad. n For manufacturing activities, purpose of financing is for plant & building, machinery & equipment acquisition. 17
Terms & Conditions n Margin:<85% of project cost. n Tenor: <10 years, inclusive max. 2 years grace period. n Currency: USD or other applicable currencies. 18
LENDING & GUARANTEE EXPOSURE (Regional portfolio in September 2012) 19
n Use financing available to improve your competitiveness. n Mitigate operational & non-payment risk where possible. n Do your own due diligence. Don t be overwhelmed by stories. n Happy exporting! 20