Institution details
Sinosure - China Export & Credit Insurance Corporation (Sinosure)
Key facts
- Established in 2001
- Ownership: Public
- Fortune Times Building, 11 Fenghuiyuan, Xicheng District, Beijing100033, China
- +86 10 6658 2288
- https://www.sinosure.com
Latest update: 03/12/2021
rating type | rating agency | type | rating |
---|---|---|---|
Institution rating | S&P | Foreign currency | A+ |
Country rating | S&P | Local currency | A+ |
Products
- Buyer credit insurance
- Supplier credit insurance
- Overseas investment insurance
- Inbound investment insurance
- Bonds and guarantees
- Short term credit insurance
- Other products
Buyer credit insurance
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 in China (except Hong Kong, Macau, and Taiwan). 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
Supplier credit insurance
Provides an exporter to safeguard its foreign exchange collection under the suppllier’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
Mediumto long-term export credit insurance:
- Preor 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
Overseas investment insurance
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
Inbound investment insurance
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.
Bonds and guarantees
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
Short term credit insurance
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
Other products
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
Performance highlights
What's new?
- In June 2021, Sinosure became the first Chinese insurer to open DIFC office.
- 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 (LIBOR + 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