Natural Gas Liquefaction Project, Ethiopia

　　On December 3, SINOSURE issued its first MLT Insurance Policy under "innovated refinancing mode" covering a natural gas liquefaction project in Ethiopia. This mode, with receivables buy-out by bank, provides an "insurance + financing + off-balance-sheet" solution which facilitates 340 million RMB financing with 5-year deferred repayment. The financing was closed within just three and a half months.

　　Once completed, the project will provide a continuous supply of clean energy for the local area, which will help to improve the energy-supply structure there and reduce energy imports and environmental pollution. Meanwhile, employment will be created. This is a contribution to the sustainable development of Ethiopia with Chinese efforts.

　　This innovated mode enables exporters, during the construction period, to sell out their clean, independent and irrevocable accounts receivable to banks without recourse, so as to collect cash income instantly. An advantage of this mode is that the exporter, with a Receivables Financing Agreement signed with the bank, can have a control over the financing progress. Compared with buyer's credit product, this mode facilitates quicker financing.

　　With this solution, SINOSURE covers political and commercial risks both at indemnification ratio of 95%. The internal process of approval was expedited thanks to SINOSURE’s supportive measures for “high-end equipment” sector. The bank, as insured, offered favorable terms and conditions and established closer relationships with high-quality exporter. This collaboration has set a good example of RMB financing for BRI co-building, and for Chinese exporters’ overseas business exploring.