Supplier Credit (Pre and Post-Delivery)

• Insures exporter against any political event of loss prior to shipment preventing the execution of the contract
• Pre-shipment political risk insurance at 85% of actual costs incurred executing contract (profit excluded)
• Used by exporters to offer better credit terms to foreign buyers for pre- and post-delivery
• Cover up to 100% political risk as long as maximum amount of loss is not more than 90% of the South African contract value
• Policy can be pledged to a bank

Small and Medium Transactions

• Corporate loan facility to South African exporters for export contracts
• Maximum amount: Up to USD 20 million
• Tenor: 5 years (door-to-door)
• Quick approval process, simple documentation, and minimal security required

Boat Building Insurance

• Cover for South African boat builders expanding exporting capabilities
• Used for pre-export working capital or advance payment guarantee facilities
• Eligibility:
  - Boat price up to approximately USD 20 million
  - Purchase agreement between South African exporter and foreign buyer
  - Boat builder must sign recourse deed with ECIC; security registered over the boat; boat builder shall cede the rights under its commercial insurance
• Term: Up to 5 years; minimum 6 months for working capital
• Criteria:
  - Demonstration of employment creation or maintenance
  - Boat maker to be in same line of business for 2 years; demonstrate latest 2 years’ performance and technical capabilities; and other credit criteria

Performance Bond

• Benefit to foreign buyer in support of South African exporter that has failed to fulfil its contractual obligations; usually for contractors
• Term: Linked to the underlying supply contract
• Maximum bond value: Up to 10% of the contract value and can be increased with board approval on a case-by-case basis
• Risk participation agreement: ECIC insures a bank for a portfolio of bonds issued on various contractors/exporters

Line of Credit

• Covered loan from an eligible lender and to foreign financial institution, the proceeds of which are on-lent to buyers of South African goods and services
• Payment default is placed on the foreign bank since it is the borrower of record
• Maximum credit amount: USD 20 million
• Tenor: Up to 5 years (or longer, on a case-by-case basis)
• Cover: 100% cover for both political and commercial
• Transactions require board approval

Buyer Credit

• Available to insure financial institutions lending to corporate or sovereign buyers, or a project finance entity
• Maximum: Up to 85% of contract price
• Project finance criteria includes (but is not limited to):
  - Independent feasibility study
  - Shareholders equity contribution of at least 30% (preferably in cash)
  - Debt-equity ratio must be maintained throughout the life of the project
  - Acceptable payment mechanism (e.g., escrow account, off-take agreement)
  - Completion guarantee by project owners
  - Technical and financial management agreement
  - Maintenance contracts to be entered into with South African suppliers
  - Raw material and other inputs contracts must be assured
  - Sufficient all-risk insurance
  - Assets mortgaged and pledged to the lenders
  - Host country’s environmental standards must be in place
  - Project must have positive socio-economic impact

Investment Insurance

• Cover provided against political risk insurance causes of loss which prevents the foreign business to operate as envisaged for at least 1 year, and/or produce profits for 3 consecutive years
• Term: Up to 15 years
• Maximum liability: 90% of investment plus retained profits/dividends up to the insured amount over the life of the investment (capped at 200% of investment)
• Eligibility:
  - Cash investment
  - Shareholder/non-shareholder loans