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$400Million), 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 1. Long-Term Foreign Currency IDR：A+ 2. Short- Term Foreign Currency IDR：F1 3. National Long-Term Rating：AAA(twn) 4. National Short-Term Rating： F1+(twn) 4

Main Business Items Credit Services Guarantee Services Export Credit Insurance 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,

9 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

10 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 > 1year) 7. Payment of Interest: interest paid every 6 months

Procedures -Actual Utilization 11

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

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

14 importer exporter Step 2 sales contract

15 Relending Bank Importer Step 3 Loan Application

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

17 Relending Bank Eximbank Step 5 Request for Disbursement Disbursement

18 Relending Bank Importer Eximbank Step 6 Repayment

Disbursement Procedure 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 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 21

Relending Banks in Mongolia Eximbank State Bank of Mongolia TDB Khan Bank LLC 22

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