RISK COVERED. Calling of the bond by the foreign buyer due to failure by the SA exporter to fulfil contractual obligations due to: • financial constraints (e.g. insolvency of the contractor); and/or • poor /non-performance as per contract specifications. • Transactions to be included in the bond portfolio must relate to an export contract between a South African registered company and a foreign buyer • Technical and financial capacity of the South African contractor must satisfy ECIC’s underwriting criteria • Export destination of transactions in the portfolio will be limited to countries where ECIC is open for cover • Transactions to be insured can be in ZAR or USD. • ECIC cover not to exceed 50% of the risk on each bond transaction under the Risk Participation Agreement • The maximum tenor of each Risk Participation Agreement is 5 years on a revolving basis • Tenor of each bond transaction is limited to an agreed maximum period, consistent with the underlying export contract
RISK COVERED. Calling of the bond by the foreign buyer due to failure by the SA exporter to • • • South African (SA) registered company • There must be an export contract between the SA company and the foreign buyer • satisfy ECIC’s underwriting criteria • Export destination of a transaction should be a country where ECIC is open for cover • Transactions to be insured can be in ZAR or USD. • The maximum indemnity for loss is 90% of the bond value. • Maximum bond value is typically 10% of the South African contract value. An exposure beyond 10% of the contract price can be approved on a case-by-case basis depending on the merits of the project.
RISK COVERED. This contract covers any outstanding debts, where the non-payment results directly and solely from the insolvency of your buyer.
