The first case in the country! Cross border RMB export credit+credit insurance project successfully landed in Wuxi
Yesterday (15th), it was learned from the Wuxi Municipal Bureau of Commerce that China Export&Credit Insurance Corporation (Sinosure) has recently issued the country's first "One Contract, Two Currencies" export buyer credit policy for the Sihanouk Port Economic Zone Thermal Power Plant project constructed by Wuxi Guolianhua Optoelectronic Station Co., Ltd. This marks a significant breakthrough in Wuxi's full play to the role of export credit insurance, promoting the use of cross-border RMB, and supporting the construction of key overseas cooperation parks.
Hot spot project of Sihanouk Port Special Economic Zone in Cambodia (the Belt and Road)
In recent years, with the vigorous development of the Xigang Special Zone, the contradiction of insufficient power supply has become increasingly prominent. To this end, Xigang Special Zone Company signed a PC contract with Wuxi Guolianhua Optoelectronic Station Co., Ltd. to build a self owned power plant in the park, in order to fully guarantee the electricity demand of enterprises in the park and solve the key "pain points" that restrict the development of the park.
Considering the inconsistency between the payment currency of the commercial contract and the future income currency in the financing of the project, in order to effectively reduce the exchange cost of the project party, avoid exchange rate risks, and actively explore new models of RMB settlement for cross-border business between China and Cambodia, the Wuxi office of China Export&Credit Insurance Corporation has innovatively proposed a comprehensive solution of "one contract, two currencies", which is to form a consortium of domestic and foreign banks to provide RMB and USD financing Export buyer credit policies in USD and RMB will be issued by China Export&Credit Insurance Corporation based on financing agreements. The Wuxi office of China Export&Credit Insurance Corporation quickly established a project team and repeatedly communicated with the financing bank to promote the implementation of the project plan. With the joint efforts of all parties, the project was approved with a letter of intent for export buyer credit insurance in March 2021, and a syndicated loan agreement was officially signed in June. At the end of June, China Export&Credit Insurance Corporation officially issued an export buyer credit policy, and the project achieved financing closure. With the leverage and support of the insurance policy, the financing consortium has completed the placement of all US dollar and RMB loans, timely meeting the financing needs of the project and receiving high recognition from all parties involved in the Xigang Special Zone and other projects.
Next, Wuxi City will summarize the successful implementation experience of this project, fully combine the construction needs of overseas key projects and expand the trend of RMB cross-border settlement, accelerate the innovation of export credit insurance models and project application, and make greater efforts to promote Wuxi City's high-level opening up. (Tianyi)
