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. “Trade Beyond Boundaries with Exim Bank”
Transcript
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.
“Trade Beyond Boundaries with Exim Bank”
4
Export Import Bank of Malaysia Berhad (“EXIM”) is Malaysia’s sole development financial institution dedicated to the promotion of external trade (cross-border)
Introduction
Shareholder Minister of Finance Inc., Malaysia (100%) Authorized Capital RM3.0 billion (USD980.94 million)* Paid-up Capital RM2.7 billion (USD882.84 million)* International Rating Fitch: A- Moody’s: A3 Current Staff Strength 287 Offices Head Office in Kuala Lumpur and 3 Rep.
Offices in Penang, JB & Kuching. Business Coverage Banking, Trade Credit Insurance & Advisory Global Coverage Financed & insured in 104 countries across
5 continents
Note * : USD 1 = RM 3.0583 as at 31st Dec 2012
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 Mandated Role
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Our Business solution
• Country Analysis
• Industry Analysis
Advisory
• Term Loan • Working
Capital • Guarantee
Banking • Short-Term • Medium/ • Long-Term • Political Risk
Credit Insurance
We offer integrated cross-border solutions for our customers & their affiliates.
Banking Products
Short Term Financing
Working Capital (Supplier)
Working Capital (Buyer)
Medium & Long Term Financing
Malaysian Contractors
Foreign Corporations
Foreign Government
Malaysian Investors
• Financing to foreign buyers for purchasing goods & services
from Malaysia.
• Financing is disbursed directly to Malaysian suppliers.
• Repayment is by the foreign buyers.
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Buyer Credit
Buyer Credit Financing Structure
Guarantor Bank
Malaysian Exporter Importer
1. Signs sales agreement
3. R
equest
s to
beco
me G
uara
nto
r
4. Agree to become Guarantor 7. Check
on b
uyer’s
financi
ng a
vaila
bili
ty
9. Ships goods
10. D
isburs
e p
aym
ent
2. In
troduce
im
port
er
& g
uara
nto
r bank
6. Place order
8. Is
sue L
C o
r LU
8
Transaction Diagram
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.
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Benefits to Foreign Buyers/Importers
Eliminate non-payment risk.
Faster turnaround time in receiving sales proceeds.
May become effective marketing tool.
Strategy to improve sales.
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Benefits to Malaysian exporters
SUPPLIER CREDIT
FACILITY
BANKING FACILITIES
For Malaysian manufacturing & trading companies. A short term trade financing for exports of Malaysian
manufactured goods.
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Supplier Credit Facility
13
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.
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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
BANKING FACILITIES
OVERSEAS
PROJECT/
CONTRACT
FINANCING
FACILTY
Terms and Conditions Facility Project Financing Contract Financing Purpose 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
Margin of
Financing
<85% of Project Cost <85% of Contract Value
Eligibility Malaysian Suppliers/Contractors
Tenor of
Financing
<10 years inclusive of grace period
(not exceeding 2 years)
<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
• 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.
BANKING FACILITIES
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)
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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 10.Premier Bank Ltd
11.Soneri Bank Ltd 11.Prime Bank Ltd
12.Habib Metropolitan Bank Ltd 12.South East Bank Ltd
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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
EXIM BANK’S EXPOSURE ALL AROUND THE WORLD
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*
… By Providing Support in Overseas operations
ASIA
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Asia (excluding Middle East)
72%
Europe 10%
Middle East 8%
Oceania 4%
Africa 3%
America 3%
Note * : as at 31 December 2013
Exposure driven by industries where Malaysian exporters are competitive, including construction and manufacturing
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Industry Exposure
Loan Breakdown by Industry*
Manufacturing, 21.5%
Construction, 18.3%
Government (Buyer Credit Facility),
17.2%
Electricity, Gas & Water Supply,
12.6%
Wholesale and Retail Trade, and Restaurant and Hotels, 11.3%
