Trade Beyond Boundaries with Exim Bank 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.
Introduction Export Import Bank of Malaysia Berhad ( EXIM ) is Malaysia s sole development financial institution dedicated to the promotion of external trade (cross-border) Shareholder Minister of Finance Inc., Malaysia (100%) Authorized Capital Paid-up Capital RM3.0 billion (USD980.94 million)* RM2.7 billion (USD882.84 million)* International Rating Fitch: A- Moody s: A3 Current Staff Strength 287 Offices Business Coverage Global Coverage Head Office in Kuala Lumpur and 3 Rep. Offices in Penang, JB & Kuching. Banking, Trade Credit Insurance & Advisory Financed & insured in 104 countries across 5 continents Note * : USD 1 = RM 3.0583 as at 31 st Dec 2012 4
Our Mandated Role Provide banking facilities to support exports & imports of goods, services and overseas investments. Provide export credit insurance services, export financing insurance, political risk insurance & guarantee facilities. - with emphasis on Non-Traditional Markets
Our Business solution We offer integrated cross-border solutions for our customers & their affiliates. Country Analysis Industry Analysis Advisory Banking Term Loan Working Capital Guarantee Short-Term Medium/ Long-Term Political Risk Credit Insurance 4
Banking Products Short Term Financing Medium & Long Term Financing Working Capital (Supplier) Malaysian Contractors Working Capital (Buyer) Malaysian Investors Foreign Government Foreign Corporations
Buyer Credit Financing to foreign buyers for purchasing goods & services from Malaysia. Financing is disbursed directly to Malaysian suppliers. Repayment is by the foreign buyers. 6
Buyer Credit Financing Structure 4. Agree to become Guarantor Guarantor Bank 2. Introduce importer & guarantor bank 7. Check on buyer s financing availability 8. Issue LC or LU 10. Disburse payment 3. Requests to become Guarantor Malaysian Exporter 1. Signs sales agreement 6. Place order Importer 9. Ships goods
Transaction Diagram 8
Benefits to Foreign Buyers/Importers Access to low borrowing cost in Malaysia. LC need not be issued on repeat basis like before. Enhance Malaysian suppliers confidence in negotiation. Enhance purchasing power. Alternative to home borrowing. 9
Benefits to Malaysian exporters Eliminate non-payment risk. Faster turnaround time in receiving sales proceeds. May become effective marketing tool. Strategy to improve sales. 10
BANKING FACILITIES SUPPLIER CREDIT FACILITY
Supplier Credit Facility For Malaysian manufacturing & trading companies. A short term trade financing for exports of Malaysian manufactured goods. 12
Type of Financing (a) Pre-Shipment Financing To finance 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 Malaysian 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. 13
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 14
BANKING FACILITIES OVERSEAS PROJECT/ CONTRACT FINANCING FACILTY
Terms and Conditions Facility Project Financing Contract Financing Purpose Margin of Financing Eligibility Tenor of Financing Development, upgrading or expansion of infrastructural facilities, plant & building and fixed asset purchases such as machinery & equipment Working capital & bonds requirement for undertaking of overseas contracts <85% of Project Cost <85% of Contract Value <10 years inclusive of grace period (not exceeding 2 years) Malaysian Suppliers/Contractors <10 years Interest rate Cost of funds + spread Cost of fund + spread Currency USD or other applicable currencies USD or other applicable currencies Disbursement Direct to Suppliers/Contractors Direct to suppliers/contractors Overhead expenses direct to borrowers Repayment From Project proceeds :- Monthly or Quarterly From Contract proceeds :- progressive or Bullet repayment
BANKING FACILITIES Joint initiative between ADB & Exim Bank to promote Malaysia s trade with Asia s emerging economies. Exim Bank is able to guarantee payment (by confirming LCs) of 79 participating banks from 16 emerging Asian countries.
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 19
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 20
EXIM BANK S EXPOSURE ALL AROUND THE WORLD
By Providing Support in Overseas operations EXIM provides support to Malaysian exporters that Malaysian commercial banks are less able to lend to, on account of the banks lack of coverage in international operations or lack of appetite for such cross border risk EXIM s Total Cross Border Exposure Breakdown by Country* Middle East 8% Oceania 4% Africa 3% America 3% Europe 10% ASIA Asia (excluding Middle East) 72% Note * : as at 31 December 2013 9
Industry Exposure Exposure driven by industries where Malaysian exporters are competitive, including construction and manufacturing Loan Breakdown by Industry* Agriculture, 7.4% Transport, Storage & Communication, 2.3% Finance, Insurance & Real Estate Activities, 1.0% Others, 0.1% Mining & Quarrying, 8.4% Manufacturing, 21.5% Wholesale and Retail Trade, and Restaurant and Hotels, 11.3% Construction, 18.3% Electricity, Gas & Water Supply, 12.6% Government (Buyer Credit Facility), 17.2% Note * : as at 31 December 2013 10
Thank You 25