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Sinosure - China Export & Credit Insurance Corporation (Sinosure)

Key facts

  • Established in 2001
  • Ownership: Public
Not Part of the OECD Part of the Berne Union

Latest update: 03/12/2021

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

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