Export-Import Bank of Malaysia Berhad (MEXIM)

Institution type	Export Credit Agency
Ownership	100% owned by the Ministry of Finance
Head Office	Export-Import Bank of Malaysia Berhad (357198-K) Level 1, Exim Bank, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia
Rating	Moody's A3, Fitch A-
Major instruments	Conventional banking, Islamic banking, export finance (medium and long term guarantees), short-, medium- and long-term insurance/takaful, bonds and guarantees
Information	http://www.exim.com.my email : communication@exim.com.my Tel: (+063) 2601 2000

Summary
Founded in 1995, Export-Import Bank of Malaysia Berhad (Exim Bank of Malaysia or MEXIM) is a wholly state owned Malaysian export credit agency and member of Berne Union, ADFIAP,Aman Union and AEBF. MEXIM ismandated to promote Malaysian investment and exports in priority sectors such as capital goods, infrastructure projects, shipping or value added manufactured products. MEXIM plays the role in financial assistance for domestic companies to enter new markets abroad.Besides banking facilities,MEXIM provides a broad range ofinsurance/takaful products including trade credit insurance/takaful, political risk insurance or overseas investment insurance/takaful to cover exporters and investors against political and commercial risks.

List of MEXIM products :

Short Term Credit Insurance/ Takaful

Trade Credit Insurance/Takaful (Export/Domestic/Import)
Bank Letter of Credit Policy
Bank Trade Credit Takaful
Multi Currency Trade Financing Scheme
Indirect Exporters’ Financing Scheme
Bankers Trade Credit Insurance (BTCI)

Medium-Long Term Credit Insurance/Takaful

Political Risk Insurance (PRI)
Overseas Investment Insurance/Takaful
Specific Policy (Contract/Constructional Works/Services)
Buyer Credit Guarantee
Bond Risk Insurance

Example of relevant products for private infrastructure investments
Instrument	Political Risk Insurance (PRI) / Takaful
Instrument type	Insurance / Takaful
Eligible investments, customers, and projects	Malaysian companies / contractors, as well as Malaysian investors raising funds overseas
Eligible beneficiaries Lenders/financiers	private sector companies
Eligible forms of investment Equity	shareholder advances, shareholder guarantee, commercial bank loans / financing, movable assets
Risk types covered	• Transfer restriction • Expropriation • War and civil disturbance • Breach of contract
Maximum tenor	Medium/Long-term Coverage up to a maximum of 15 years
Maximum amount or cover	covers up to 90% of losses
Fees and Premium/Contribution	Processing fee of 1.0% of insured amount subject to minimum RM1,000 and maximum of RM20,000 (or foreign currency equivalent)payable upon accepting Letter Offer. (applicable to non-SMEs)) Premium/contribution is calculated based on the Risk Based Pricing Model (RBPM) and payable in advance on a one-off basis in Ringgit Malaysia equivalent.
Instrument	Specific Policy (contracts / constructional works/ services) / Takaful
Instrument type	Insurance / Takaful
Eligible investments, customer, and projects	Malaysian exporters who undertake contracts for export of capital goods, or turnkey project, or construction works, or rendering services abroad or local, against the risk of non-payment by the overseas buyer / Malaysian buyer. (Local project or Malaysian buyer must have export element).
Eligible beneficiaries Lenders/financiers	private sector companies
Eligible forms of investment	Contracts that are: i. A one-off project / contract but may be repetitive in nature project or revolving during the contract period. iii. Lengthy in terms of manufacturing/project period Risk types covered : • Commercial (buyer’s insolvency, default in payment, others) • Economic risks (blockage or delay in transfer of payment, imposition of import and export restriction, cancellation of import license) • Political risks ( war\, revolution or other similar civil disturbances in the buyer’s country)
Maximum tenor	Medium / Long-term Coverage up to a maximum of 15 years
Maximum amount or cover	Up to 90%
Fees and Premium/ contribution	Processing fee of RM1,000 per application or foreign currency equivalent. (applicable to non-SME’s) Premium / contribution is calculated based on the Risk Based Pricing Model (RBPM) and payable in advance on a one-off basis in Ringgit Malaysia equivalent.
Other conditions	Premium / contribution rates primarily depend on EXIM Banks grading of the market with which the business is done and terms of payment. In general, the premium / contribution is dependent on market risk and credit terms.
Instrument Bond	Risk Insurance
Instrument type	Insurance
Eligible investments, borrowers, and projects	Malaysian contractors
Eligible beneficiaries	Lenders, private sector companies
Eligible forms of investment	Bonds
Risk types covered	i. Unfair calling by government / public buyer ii. Unfair calling by private buyer (selective cases) iii. Fair calling, but following political impediments: – Import/Export Restriction – contractor is unable to fulfill its obligations under the contract caused by: – The implementation of any law or of any order, decree or regulation of having the force of law, which in circumstances outside the control of the contractor, prevents the import/rendering of the goods/services specified in the contract, or – The cancellation, in circumstances outside the control of the contractor, of a previously issued and currently valid authority to import/render the goods/services specified in the contract. – War – contractor is unable to fulfil its obligations under the contract caused solely and directly by the frustration of the contract or termination due to the occurrence within the country of the principal, of war, civil war, insurrection, rebellion and/or revolution which directly prevents the due performance of the said contract in whole or in part.
Maximum tenor	5 years
Maximum amount or cover	Up to 90% of losses
Premium	Premium rates primarily depend on EXIM Bank’s grading of the market with which the business is done and terms of payment. In general, the premium is dependent on market risk and credit terms.