Relending Facility

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Relending Facility

Relending Facility is a program to encourage foreign businessmen including end-users and dealers to purchase goods sold by Taiwan exporters. Basically it is a bank-to-bank arrangement through which EXIMBANK extends credit lines to local and foreign financial institutions who in turn relend funds to their clients for the importation of capital goods or consumer goods from Taiwan exporters.

Currently, a floating interest rate is applied to all eligible transactions under the Relending Facility Agreement. Any financial institutions interested in establishing a Relending Facility Agreement are welcome to send EXIMBANK an application letter along with their annual reports for the past three years. Main features of Relending Facility are described below.

Type of Goods to be Financed

Equipment, parts, raw materials and other goods purchased from Taiwan exporters.

Currency

In US Dollars.

Percentage and Amount of Financing

For each transaction, the percentage of financing is up to 100% of the gross purchase price.

Tenor

The maximum tenor is five years.

Interest Rate

The six (6) month London Inter-Bank Offered Rates (LIBOR) for US dollar plus margin.
Repayment

Normally, the principal shall be repaid in equal semi-annual installments with the first one being repaid on the date falling 12 months after the date of EXIMBANK’s disbursement. Where the tenor of any eligible import transaction is less than one year, the relending financial institution shall repay such loan in one lump sum on the maturity date.