VIetnam-Israel Financial Protocol Agreement (ASHR'A)

1. The Financial Protocol between Israel and Vietnam
has been signed on April 2008 for the amount of
$150m and extended on November 2011 for the
total amount of $250m.
Aim:
- Developing the economic relations between the
two countries and promote Israeli export to Vietnam
using an efficient financial structure.
- Broadening of the financing possibilities for the
Israeli exporters to Vietnam.
Financial Protocol with Vietnam

2. The Players
Exporter (seller(Costumer (buyer(
Foreign bank Local bank
Insurance provider

3. Inter– BankCredit Line
Cash
Insurance policy
RepaymentsRepayments
Shipments
LoanLoanLoanLoan
Exporter (seller(
Costumer (buyer(
Foreign bank Local bank

4. Inter – Bank Credit Line in the
Framework of the Protocol
Individual Loan Agreement
Financial Protocol
Specific Commercial
Contract
Finance
Insurance
Framework Loan Agreement
Vietnamese Buyer
Lending
bank
Israeli Exporter
Vietnamese
MOF
Guarantee
Repayment

5. How does it Work?
Israeli Exporter
Lending
Bank
Vietnamese
MOF
Disburse-
Disburse-
m
ents
m
ents
Insurance
Insurance
Repayment ofRepayment of
the loanthe loan
Execution of DealExecution of Deal
LoanLoan
AgreementAgreement
LoanLoan
AgreementAgreement
Vietnames
e Buyer

6. Framework Agreements were signed between Israel
banks and Vietnamese MOF.
For each transaction a Specific Loan Agreement is
signed.
The exporter executes the deliveries to the buyer.
Receipt of export documents by the buyer and request
from Vietnamese MOF to set up the loan.
The Israel bank finances the exporter and indebts the
Vietnamese MOF.
Ashra covers the Israeli bank against non-repayment of
the loan guaranteed by Vietnamese MOF.
Description of loan procedure

7. Lending banks under the Protocol

8. Eligibility for Financing
Transaction Amount Financing Option
Up to $25Mln Option A only ( 8 years(
Over $25Mln Option A (8( or B (10(

9. Credit Terms
Down Payment - 15% of transaction amount
Long Term Credit - 85% of transaction, Insured by Ashra:
– Option A: 8 years Repayment Period:
• 16 semi-annual repayments commencing on 6th month
• Floating Interest: Libor + 0.25% p.a.
– Option B: 10 years Repayment Period:
• 20 semi-annual repayments commencing on 6th month
• Floating Interest: Libor + 0.35% p.a.

10. Protocol Terms
Min Israeli Content – 30%
Min Israeli Goods and Services – 25%
Max Profit & otherexpenses – 5%
Goods – Made Entirely in Israel orMade
In Israel = 100%, otherwise X%
Services – above 75% = 100%, otherwise
X%
Declaration Form

11. Israeli exporter
Israeli exporter /packager :
Must be Company registerin Israel
In each case we examine the:
Experience
Equity
Performance ability
If needed:
Askforcollateral
indemnity letter
Bankguaranty

12. Advantages of the Protocol
Well-structured and prepared process,
supported by financing facilities
Enables the Israeli Exporters to offerlong
termcredit with favorable terms to the
Vietnamese Buyers
Long termcredit with financing terms
Reduced riskmitigation premium

13. Possibility fordown payment financing
Short timetable
Allows the Vietnamese Buyerto benefit
fromIsraeli goods and technologies in
different sectors such as medical and
health care, agricultural development,
education, watertreatment, energy, etc.
Advantages of the Protocol

14. Type of projects

15. WaterTreatment

16. Medical Device

17. Agriculture

18. Protocol Trends
Medical
Agriculture
Communication
Infrastructure
Education