Exposure and country export data

• The policy holder can be a Chinese financial institution or a foreign financial institution that has branches in China, at least USD 20 billion in assets, and export credit experience in the last 3 years, with the exporter being a legal entity registered
• Medium to long-term export credit insurance covers payment default by the borrower or guarantor under the credit agreement due to certain political and commercial risks
• Down payment: 15% (20% for shipping vessels)
• Tenor: 2–15 years
• Eligibility:
• Contracts and loan agreements with a value over USD 1 million
• Chinese content above 60% of contract value (40% in ship finance; 15% for civil works)
• Cover:
• Supplier credit up to 90%
• Buyer credit up to 95%
• Commercial risk cover in project finance typically 50%, or higher on a case-by-case basis
• Currencies covered: USD, CNY, EUR or other acceptable currencies
• Premium:
• Price depends on country risk, tenor, borrower credit risk, and guarantor credit risk
• Premium can be financed up to 85%
• Premium can be paid in three disbursement installments
• Rate: Typically floating

• Allows exporters to safeguard foreign exchange collection under the supplier’s credit financing
• Tenor: 2-10 years
• Cover:
• Supplier credit up to 90%
• Buyer credit up to 95%
• Commercial risk cover in project finance typically 50%, or higher on a case-by-case basis
• Obligates the insurer to underwrite the policyholder's export business both on credit terms and under L/C terms
• Letter of credit insurance:
• Covers policyholder’s exporting risks under letter of credit payment terms within a specified scope
• Commercial risks of issuing bank include bankruptcy, default on proceeds, or refusal to accept documents
• Political risks include foreign exchange restrictions or prohibitions, protracted payment due to government decrees, or force majeure
• Specific buyer’s insurance:
• Covers policyholder's exporting risks to one or several buyers on credit terms
• Used when exporting mechanical and electrical products as well as large-value complete sets of equipment
• Commercial risks to protect against buyer bankruptcy, inability to pay debt, and refusal to pay
• Political risks include restrictions or prohibitions on foreign exchange and/or imports, cancellation or non-renewal of import license, protracted payment due to government decrees, or force majeure
• Specific contract insurance:
• Covers risks of the policyholder's individual/specific export contract on credit terms
• Commercial risks to protect against buyer bankruptcy or refusal by buyer to either accept goods or pay for goods once accepted
• Political risks include restrictions or prohibitions on foreign exchange and/or imports, cancellation or non-renewal of import license, protracted payment due to government decrees, or force majeure
• Insurance against buyer's breach of contract:
• Covers pre-shipment or post-shipment risk of the policyholder's specific installment payment contract
• Used for export of mechanical and electrical products, complete equipment sets, overseas project contracts, and labor cooperation
• Commercial risks to protect against buyer bankruptcy or refusal by buyer to either accept goods or pay for goods once accepted
• Political risks include restrictions or prohibitions on foreign exchange and/or imports, cancellation or non-renewal of import license, protracted payment due to government decrees, or force majeure
• Medium to long-term export credit insurance:
• Pre or cash payment typically 15% (20% in case of vessels)
• Tenor: Between 1 and 10 years
• Eligible contracts/loan agreements have a value of at least USD 1 million
• Chinese content generally not below 60% of contract value (40% in ship finance; 15% for civil works)
• Cover percentage for both political and commercial risk up to 90% in supplier credits and up to 95% in buyer credits (commercial risk cover in project finance typically 50%, or higher on a case-by-case basis)
• Cover available in USD, CNY, EUR or other acceptable currencies
• Premium depending on factors such as country risk, tenor, borrower credit risk, and guarantor credit risk, allowed to be financed up to 85%, and to be paid in three instalments in line with disbursements
• Interest rate in supplier credits to be discussed and agreed by exporter and importer
• The policy holder can be a Chinese financial institution, or a foreign financial institution that has branches in China, at least USD 20 billion in assets, and export credit experience in the last three years, with the exporter being a legal entity registered in China (except, Hong Kong, Macau, and Taiwan)
• Interest during the waiting period is covered; documentary risk is not covered

• Supports Chinese enterprises and financial organizations in making investments overseas
• Insurer underwrites an investor's economic losses in overseas investment and profits caused by political risks of a host country
• Covered risks: expropriation, exchange restrictions, war and political riot, and breach of contract
• Overseas Investment (Equity) Insurance: to encourage Chinese enterprises to invest overseas by assuming the loss of shareholder’s equity in overseas investment
• Overseas Investment (Debt) Insurance: to encourage Chinese companies to grant shareholder loans for their overseas investment projects, or to encourage financial institutions to provide loans or other financing recognized by SINOSURE
• Eligible investors:
• Enterprises and financial institutions registered and having its principal place of business in China (excluding those controlled by foreign, Hong Kong, Macau, and Taiwan enterprises, institutions, and citizens)
• Financial institutions that provide financing for overseas investments by the enterprises mentioned above
• Eligible investments:
• Direct investments
• Loans
• Contractual relationships
• Other types of investments approved by Sinosure
• Insured interests:
• Loss of capital, realized earnings, and accrued interest directly caused by the insured risks
• Policies offered:
• Equity insurance policy
• Shareholder loan policy
• Financial institutions loan policy
• Risks insured:
• Expropriation
• Restriction on transfer and conversion
• Damage or inability to operate due to war
• Breach of undertaking
• Cover: Up to 95% of investment

• Encourage and promote investors from foreign countries and Hong Kong, Macao, and Taiwan to make investments in China
• Insurer required to underwrite all economic losses of overseas investors incurred in their investments and profits because of political risks in China
• Provision of equity and liability insurance

• Sinosure seeks to improve Chinese companies’ credit ratings, obtain financing, and explore overseas markets
• Financial guarantees: Provided to exporters and banks providing export finance via the following products:
• Package Loan Guarantee of loans for pre-shipment finance
• Negotiating Under Documents Insurance (NUDI) to banks
• Supplier’s Credit Guarantee to a bank financing an international exporter
• Project Finance Guarantee to a bank financing a project
• Non-financial guarantees: Provided to exporters and banks supporting export finance via the following products:
• Bid bond
• Performance bond
• Advance payment bond
• Quality and retention payment bonds
• Custom exemption bond
• Bail bond
• Lease payment bond

• Covered risks: political risks and commercial risks
• Covered percentage:
• Up to 90% for the loss resulting from political loss, bankruptcy, insolvency, default or other commercial risks, and the buyer’s refusal to accept goods
• Up to 90% under the SME comprehensive cover insurance
• Up to 100% under the export credit insurance (forfaiting) policy
• Insurance products for exporters
• Comprehensive cover insurance
• Small and medium size enterprise comprehensive cover insurance
• Small and micro enterprise easy credit insurance
• Additional pre-export insurance
• Insurance products for financing banks
• Export credit insurance (bank) policy
• Export credit insurance (forfaiting) policy
• Short Term Project Insurance
• Breach of contract insurance: covered for commercial risks and political risks of maximum to 90%
• Specific contract insurance: protects a Chinese exporter from the loss of A/R under a commercial export contract resulting from commercial and political risks

• Deferred export contract refinancing insurance: Similar to forfaiting, whereby Sinosure provides to a financial institution to safeguard its receivables, after the financial institution buys out the medium and long-term accounts receivable under the export contract on a non-recourse basis
• Information services:
• Country risk analysis report
• Global investment risk analysis report
• Credit reporting
• Sinorating
• Industry risk analysis
• Country information
• Credit risk management consulting and training
• Debt collection
• Domestic trade credit insurance

• Currencies: CNY, USD, EUR, or other currencies on a case-by-case basis

• Eligibility: Chinese content of 60% of contract value for standard exports; 40% for ship financing; 15% for civil works

• Pre or cash payment typically 15% (20% for vessels)

• Insurance premium:
• Calculated based on country risk, tenor, borrower credit risk, and guarantor credit risk
• Can be financed up to 85% and payable in three installments in line with disbursements

• Interest rates:
• For buyer credits, typically floating (base + margin)
• For supplier credits, to be determined on a case-by-case basis

• Provides country risk analysis and business credit information reports

• Serve the state strategy and play an important policy role in supporting China’s foreign trade development with the strategy of “going abroad”

• Safeguarding the security of national economy

• Promoting the economic growth, employment, and equilibrium of international balance of payment

• Supporting the Belt and Road Initiative

• Supporting “Made in China” initiative with special underwriter teams for industries such as information technology, advanced rail transportation equipment, energy-saving and new energy automotive, and strengthening risk studies and proposing tailor-made underwriting policies for different industries

• Innovative products and support for SMEs