Shanghai (Gasgoo)- Chinese largest automaker SAIC Motor said it signed an agreement on September 1 with the Export-Import Bank of China for a credit line worth 50 billion yuan ($7.315 billion), which is expected to effectively strengthen SAIC Motor's global comprehensive competitiveness, according to a posting on SAIC Motor's WeChat account.
According to the agreement, SAIC Motor and the Export-Import Bank of China will carry out strategic cooperation focusing on the finance service demands about SAIC's complete vehicle, auto parts, mobility service, automobile finance, international operations as well as the industrial big data and the AI domains.
(Photo source: SAIC Motor)
The Export-Import Bank of China is a state-funded and state-owned policy bank with the status of an independent legal entity. It is a bank directly under the leadership of the State Council and dedicated to supporting China’s foreign trade, investment and international economic cooperation, according to the bank’s official introduction.
Under the agreement, both parties will team up on such fields as the credit and loans, the trade finance, the settlement and the consultation. Specifically, the collaboration involves the export business of the high-tech products like the vehicles and auto parts under SAIC’s self-owned brands and the assembly line facilities, the projects of working capital loans and fixed asset investment engaged in production and operation, the “going global” projects about the overseas fixed assets investment and the acquisition of equity interests, as well as the projects themed the import of essential equipment, auto parts and key technologies.
Additionally, the bank will provide the package finance service plan for SAIC's overseas investment in fixed assets and equity acquisition projects, and its import & export trade.
The state-owned bank will also assist the China's biggest automaker with the safe and efficient distribution and operation of capital by offering the advices about how to avoid the risks of the investment and the fluctuation in the foreign exchange rate, and manage wealth.
For the first half of 2020, SAIC Motor's gross revenue fall 24.6% over a year ago to 283.74 billion yuan ($41.511 billion), and its net profit attributable to shareholders tumbled 39.01% to 8.394 billion yuan ($1.228 billion), according to the semi-annual financial results the automaker released on August 28.
