Circular on Matters Relevant to Regulating the Business of Providing Domestic Security for Foreign Loans Conducted by Insurance Institutions
关于规范保险机构开展内保外贷业务有关事项的通知
Security provision by insurance companies is restricted to prevent illegal asset transfers.
(Issued by the China Insurance Regulatory Commission and the State Administration of Foreign Exchange on, and effective as of, February 1, 2018.)
(中国保险监督管理委员会、国家外汇管理局于二零一八年二月一日发布施行。)
Bao Jian Fa [2018] No.5
保监发〔2018〕5号
Insurance group (holding) companies, insurance companies, insurance asset management companies and relevant custodians:
各保险集团（控股）公司、保险公司、保险资产管理公司、有关托管机构：
With a view to regulating the engagement in the business of providing domestic security for foreign loans by insurance group (holding) companies and insurance companies (Insurance Institutions), strengthening the oversight of offshore financing business and guarding against offshore financing risks, we, pursuant to relevant policies such as the Tentative Measures for the Administration of the Application of Insurance Capital, the Tentative Measures for the Administration of Overseas Investment of Insurance Capital, the Implementing Rules for the Tentative Measures for the Administration of Overseas Investment of Insurance Capital and the Provisions on Foreign Exchange Control in Connection with the Cross-border Provision of Security, hereby notify you of relevant matters as follows:
为规范保险集团（控股）公司、保险公司（以下简称保险机构）开展内保外贷业务，加强境外融资业务监管，防范境外融资风险，根据《保险资金运用管理暂行办法》《保险资金境外投资管理暂行办法》《保险资金境外投资管理暂行办法实施细则》及国家外汇局《跨境担保外汇管理规定》等相关政策，现将有关事项通知如下：
1 . For the purposes of this Circular, the term “business of providing domestic security for foreign loans” (the Business) means the financing act whereby an Insurance Institution applies to a domestic bank for the issuance of a letter of guarantee or standby letter of credit and the domestic bank provides security for a special purpose vehicle, or an insurance group (holding) company directly provides security for a special purpose vehicle, in order to obtain the extension of a loan to the aforementioned special purpose vehicle by a bank abroad.
一、本通知所称“内保外贷业务”是指保险机构向境内银行申请开立保函或备用信用证等，由境内银行为特殊目的公司提供担保，或者保险集团（控股）公司直接向特殊目的公司提供担保，以获得境外银行向上述特殊目的公司发放贷款的融资行为。
For the purposes of this Circular, the term “special purpose vehicle” (SPV) means an offshore enterprise directly established or indirectly controlled abroad by an Insurance Institution for offshore investment/financing purposes, using domestic or foreign assets or equity interests that it lawfully owns and in which it holds more than 95% of the equity.
本通知所称“特殊目的公司”是指保险机构以境外投融资为目的，以其合法持有的境内外资产或权益，在境外直接设立或间接控制的持股比例超过95%的境外企业。
2 . When engaging in the Business, an insurance group (holding) company may provide countersecurity to the domestic bank. When engaging in the Business, an insurance company may provide countersecurity to the domestic bank through the insurance group (holding) company to which it belongs.
二、保险集团（控股）公司开展内保外贷业务，可以向境内银行提供反担保。保险公司开展内保外贷业务，可以通过其所属的保险集团（控股）公司向境内银行提供反担保。
3 . When providing security or countersecurity, an insurance group (holding) company may do so in the form of a guarantee or an asset mortgage (pledge). If provided in the form of an asset mortgage (pledge), self-owned monetary assets, such as investment capital, capital reserve or undistributed profits shall be used.
三、保险集团（控股）公司提供担保或反担保可以采用保证担保方式或资产抵（质）押方式。采用资产抵（质）押方式的，应当使用资本金、资本公积金和未分配利润等自有资金形成的资产。
4 . An Insurance Institution shall, in accordance with the principle of management of asset and liability matching, comprehensively consider factors such as the liquidity of the asset portfolio, the interest and exchange rate levels on international financial markets and future change trends, financing costs and returns, etc. to prudently engage in the Business, improve its risk control mechanisms, make its business operation procedures compliant and duly guard against relevant risks.
四、保险机构应当按照资产负债匹配管理原则，综合考虑资产组合的流动性、国际金融市场利率汇率水平和未来变化趋势、融资成本和收益等因素，审慎开展内保外贷业务，完善风险控制机制，规范业务操作流程，切实防范相关风险。
5 . An Insurance Institution wishing to engage in the Business shall satisfy the qualification conditions for the outbound investment of insurance capital, secure approval to engage in the outbound investment of insurance capital, have a relatively strong capacity to manage asset and liability matching and financing management capabilities. It shall also establish a sound offshore financing management system, have professional offshore financing management personnel and expressly specify the relevant details for the offshore financing decision-making mechanism, division of responsibilities, business procedures and risk management.
五、开展内保外贷业务的保险机构应当符合保险资金境外投资的资质条件，获准开展保险资金境外投资业务，具有较强的资产负债匹配管理能力和融资管理能力，且建立完善的境外融资管理制度，配备专业的境外融资管理人员，明确境外融资决策机制、职责分工、业务流程和风险管理等相关内容。
When an Insurance Institution is to engage in the Business, its comprehensive solvency adequacy ratio as at the end of the previous quarter shall not be less than 150%, and an insurance company's comprehensive solvency risk rating shall not be less than the Grade A regulative category. The SPV for which an Insurance Institution engages in Business shall bear first borrower responsibilities, have a foreseeable stable cash flow revenue and have relatively strong solvency.
开展内保外贷业务时，保险机构上季度末综合偿付能力充足率应当不低于150%，保险公司偿付能力风险综合评级不低于A类监管类别。保险机构开展内保外贷业务的特殊目的公司应当担负第一还款人责任，有预期稳定的现金流收入，具备较强的偿还能力。
6 . An Insurance Institution wishing to engage in the Business shall require the deliberation and approval of its shareholders' general meeting or board of directors, produce a written resolution, make compliant its internal operating procedures and establish a liability pursuit mechanism.
六、保险机构开展内保外贷业务，应当经股东大会或董事会审议通过，形成书面决议，并规范内部操作程序，建立责任追究机制。
7 . Where an Insurance Institution engages in the Business and the loan proceeds obtained for any one of its SPV's investment projects is at least US$50 million (or the equivalent in another currency), the same shall be reported in advance to the Insurance Asset Management Association of China (IAMAC) and the project may proceed only after IAMAC has arranged for an evaluation thereof.
七、保险机构开展内保外贷业务，其特殊目的公司单个投资项目取得贷款资金金额在5000万美元（或等值货币）以上的，需要事前向中国保险资产管理业协会报告，由中国保险资产管理业协会组织评估后方可进行。
8 . An Insurance Institution that engages in the Business shall objectively and rationally control its financial leverage ratio in light of its management of asset and liability matching, the balance of financing proceeds actually obtained by means of the Business may not exceed 20% of its net assets as at the end of the preceding quarter, and the same shall be included as part of the management of its financial leverage monitoring ratio. The net assets of an insurance group (holding) company shall be the group-level net assets.
八、保险机构开展内保外贷业务，应当根据自身资产负债匹配管理情况科学、合理地控制融资杠杆比例，通过内保外贷业务实际融入资金余额不得超过其上季度末净资产的20%，并纳入融资杠杆监测比例管理。保险集团（控股）公司净资产应当为集团本级净资产。
9 . The financing proceeds derived from the Business by an Insurance Institution shall be used solely for the investment projects of its SPV. The investment projects of such SPV shall comply with the policy direction and relevant requirements of the state in respect of outbound investments, be stringently subject to the provisions on outbound investments in the encouraged, restricted and prohibited categories and comply with relevant policies of the China Insurance Regulatory Commission (CIRC) and the State Administration of Foreign Exchange (SAFE) on the offshore application of insurance capital.
九、保险机构通过内保外贷业务融入资金仅用于特殊目的公司的投资项目，且符合中国保监会、国家外汇局关于保险资金境外运用的相关政策。该特殊目的公司的投资项目应当符合国家关于境外投资的政策导向和相关要求，严格执行鼓励类、限制类和禁止类境外投资的规定。
10 . If the offshore project investment carried out by an Insurance Institution by means of the Business constitutes a material equity investment, the check and approval procedures shall be carried out therefor, for other project investments, the reporting procedure shall be carried out in accordance with relevant provisions, the source of the funds for the investment projects shall be explained in the specific investment project check and approval or report, and the check and approval or record filing procedure for an outbound investment project shall be carried out in accordance with the requirements of relevant policies of the National Development and Reform Commission.
十、保险机构通过内保外贷业务开展境外项目投资，属于重大股权投资的，应当履行核准程序，其他项目投资应当按照相关规定履行报告程序，并在具体投资项目核准、报告中将投资项目的资金来源予以说明，同时按照国家发展改革委的相关政策要求履行境外投资项目核准、备案等手续。
11 . The outbound investment carried out by an Insurance Institution by means of the Business shall comply with the transparency principle, the major asset category for the investment project or the underlying assets of the investment project shall be determined and, on the basis of the consolidated statements, the offshore investments and domestic investments shall be calculated together to arrive at the insurance capital application ratio and it shall be ensured that the regulatory policies for insurance capital application ratios are complied with.
十一、保险机构通过内保外贷业务开展境外投资，应当遵循穿透原则，确定投资项目或投资项目的底层资产所属的大类资产类别，并在合并报表的基础上将境外投资与境内投资合并计算保险资金运用比例，确保符合保险资金运用比例监管政策。
12 . An Insurance Institution carrying out an offshore project investment shall engage an independent third-party professional firm to carry out a comprehensive and detailed due diligence investigation on the investment project so as to ensure that it does not contain any major legal obstacles or legal defects and to avoid the occurrence of any title disputes. All of the relevant transaction documents in the course of an outbound investment project transaction shall expressly require the transaction counterparty to complete the procedures for the registration/record filing of the relevant assets at the necessary stages and, at the time of delivery of the assets, provide the relevant asset certificates and confirmation documents so as to ensure that the Insurance Institution genuinely, lawfully and validly secures ownership of the relevant assets.
十二、保险机构开展境外项目投资，应当聘请独立第三方专业机构对投资项目进行全面详尽的尽职调查，保证其不存在重大法律障碍或法律瑕疵，避免发生产权纠纷。在境外投资项目交易过程中，相关交易文件均应明确要求交易对手在必要环节完成相关资产的登记备案手续，并在资产交割时提供相关资产证明及确认文件，确保保险机构真实、合法、有效地获得相关资产所有权。
An Insurance Institution shall establish a sound document filing system, and file in a timely manner and duly keep all transaction documents. In the event of a dispute or controversy arising over the rights to the assets, the Insurance Institution shall protect its lawful rights and interests in accordance with the law by referencing the relevant laws and the specific contract terms.
保险机构应当建立健全完善的文件存档制度，将所有交易文件及时存档、妥善保管，如若出现任何对于资产权利的争议或纠纷，保险机构应当参照相关法律及具体合同条款，依法维护自身合法权益。
13 . An Insurance Institution shall notify its outbound investment custodian of the Business it is about to launch in a timely manner and place the proceeds from the foreign loan secured by domestic security and the investment project in the custody of the outbound investment custodian. The Insurance Institution's receipt and payment activities relating to the proceeds from the foreign loan secured by domestic security shall be carried out through the SPV's dedicated account with the offshore custodial agent.
十三、保险机构应当将开展的内保外贷业务及时通知境外投资托管人，并将内保外贷融入资金和投资项目纳入境外投资托管人托管。保险机构通过内保外贷融入资金的收支活动应当通过特殊目的公司在境外托管代理人开立的专用账户进行。
The outbound investment custodian shall comply with the transparency principle, valuate, and carry out the accounting for, the Insurance Institution's and its SPV's outbound investment project, carry out investment operation monitoring in a consolidated fashion and submit monitoring reports and relevant data, statements, etc. to the CIRC. The Insurance Institution shall cooperate with the outbound investment custodian in performing its custodial responsibilities and provide to the outbound investment custodian information relevant to the performance of its custodial responsibilities in a timely, accurate and complete fashion.
境外投资托管人应遵循穿透原则，对保险机构及其特殊目的公司的境外投资项目进行估值和会计核算，合并进行投资运作监督，向中国保监会提交监督报告和相关数据、报表等。保险机构应当配合境外投资托管人履行托管职责，及时、准确、完整地向境外投资托管人提供与托管履职相关的信息。
14 . An Insurance Institution that engages in the Business shall select relevant domestic and offshore firms that have sound management mechanisms, a good market reputation and that operate in a rational and effective manner with which to cooperate, rationally design its SPV's capital structure, reasonably arrange the currency, amount, costs and term of its financing proceeds, duly draw up the repayment or refinancing arrangements in advance and effectively manage and control liquidity risks and exchange rate risks.
十四、保险机构开展内保外贷业务，应选择具有完善的管理机制、市场信誉良好、运作科学高效的境内外相关机构进行合作，科学设计特殊目的公司资本结构，合理安排融入资金的币种、金额、成本和期限，提前做好还款安排或再融资安排，有效管理控制流动性风险和汇率风险。
15 . An Insurance Institution that engages in the Business shall strengthen the operation and management of its investment projects, regularly monitor the relevant offshore market's dynamic development, assess the investment projects' asset values and quality, enhance the SPV's operational effectiveness and risk prevention capabilities and guard against unforeseen debt repayment risks and operational risks arising from the offshore bank calling a loan on short notice or the bankruptcy and liquidation of the SPV.
十五、保险机构开展内保外贷业务，应当加强对投资项目的经营管理，定期监测境外相关市场动态发展情况，评估投资项目的资产价值和质量，提高特殊目的公司的运营效益和风险防范能力，防范境外银行临时抽贷或特殊目的公司破产清算等导致的突发偿债风险和经营风险。
16 . If the Business engaged in by an Insurance Institution could give rise to security fulfillment, the Insurance Institution shall, in the first instance, dispose of the SPV's outbound investment projects or take a market-based approach such as securing other lawful and compliant offshore financing to mitigate the risk of security fulfillment, so as to avoid the security fulfillment affecting the cross-border flow of capital.
十六、保险机构开展内保外贷业务可能发生担保履约的，应当首先通过处置特殊目的公司的境外投资项目或者通过境外其他合法合规的融资等市场化方式化解担保履约风险，避免担保履约对跨境资金流动的影响。
17 . An Insurance Institution that engages in the Business shall stringently abide by relevant domestic and foreign laws and regulations, the provisions of the industry regulator, provisions on cross-border renminbi and exchange control, carry out its financing acts in a compliant manner, strengthen compliance management and guard against legal risks. An Insurance Institution's outbound investment risk officer shall be liable for the lawfulness and compliance of the Business.
十七、保险机构开展内保外贷业务，应当严格遵守境内外相关法律法规、行业监管部门规定、跨境人民币及外汇管理规定，规范融资行为，加强合规管理，防范法律风险。保险机构境外投资的风险责任人应当对内保外贷业务的合法合规性承担责任。
18 . An Insurance Institution that engages in the Business may not:
十八、保险机构开展内保外贷业务，不得有下列行为：
(1) engage in the Business in a disguised manner to obtain credit loans abroad;
（一）变相开展内保外贷业务，在境外获得信用贷款；
(2) engage in the Business for an offshore enterprise other than an SPV as specified herein;
（二）为本通知规定的特殊目的公司以外的其他境外企业开展内保外贷业务；
(3) use assets arising from the investment of debt funds, such as the liability reserve, to provide security or countersecurity in any manner;
（三）将责任准备金等负债资金投资形成的资产以任何形式用于提供担保或反担保；
(4) have an investment project or the underlying assets of the investment project that violate(s) state macro-control policies, industry policy or outbound investment policies;
（四）投资项目或投资项目的底层资产违反国家宏观调控政策、产业政策或境外投资政策；
(5) use the proceeds from a foreign loan secured with domestic security for business other than the SPV's investment projects or to extend a loan to a third party;
（五）内保外贷融入资金用于除特殊目的公司的投资项目以外的业务，或向第三方发放贷款；
(6) intend to have the security for the foreign loan fulfilled to deceitfully obtain foreign exchange or to transfer assets abroad;
（六）蓄意进行内保外贷履约以骗取外汇、向境外转移资产；
(7) fabricate a business background to engage in arbitrage or illegal speculative trading; or
（七）虚构业务背景进行套利或非法的投机性交易；
(8) perform another act as prohibited by the CIRC.
（八）中国保监会禁止的其他行为。
19 . An Insurance Institution shall report relevant data and information in accordance with CIRC requirements and, within five working days after executing a contract for the provision of domestic security for a foreign loan, report to the CIRC on the specific business details, with the contents of such report to include but not be limited to the basic particulars of the investment project, the arrangement for the source of funds, information on the cooperating bank and SPV, information on the essential factors of the financing, the financing-related documents, the measures for the provision of security and countersecurity, etc.
十九、保险机构应当按照中国保监会的要求报告相关数据和信息，并在签订内保外贷合同后5个工作日内向中国保监会报告具体业务情况，报告内容包括但不限于投资项目基本情况、资金来源安排、合作银行和特殊目的公司信息、融资要素信息、融资相关文件、提供担保和反担保措施等情况。
If an extension of the Business occurs, the Insurance Institution shall, within five working days after the execution of the contract for the extension of the Business, report on the operation and risk status of the investment project, as well as the reason for the extension of the Business, information on the important factors of the extension and the extension-related documents.
如发生内保外贷业务展期，应当在签订内保外贷业务展期合同后5个工作日内向中国保监会报告投资项目经营情况和风险状况，以及内保外贷业务展期原因、展期要素信息和展期相关文件等。
If a major risk event that could result in fulfillment of the security occurs, a report shall be made to the CIRC and SAFE within three days from the date of the occurrence of the event. If the issue still cannot be solved after employing the fulfillment risk mitigation measures mentioned in Article 16 hereof and fulfillment of the security ultimately occurs, a report shall be made to the CIRC within three days after fulfillment of the security and, in accordance with exchange control provisions, the domestic guarantor or the domestic counter guarantor that has become the creditor of the foreign loan shall carry out foreign claim registration.
如发生可能导致担保履约的重大风险事件，应当在事件发生之日起3日内向中国保监会和国家外汇局报告。如在采用本通知第十六条所述履约风险化解措施后仍无法解决，最终发生担保履约的，应当自担保履约后3日内向中国保监会报告，并按照外汇管理规定，由成为对外债权人的境内担保人或境内反担保人办理对外债权登记。
20 . An Insurance Institution that is already engaging in the Business shall adjust such Business in strict accordance herewith within three months from the date of the issuance hereof so as to ensure that its Business complies with regulatory provisions.
二十、已开展内保外贷业务的保险机构应当在本通知发布之日起三个月内严格按照本通知要求调整内保外贷业务，确保公司内保外贷业务符合监管规定。
21 . The CIRC will strengthen its information sharing and synergistic oversight with relevant ministerial level authorities such as the People's Bank of China and SAFE, strengthen the monitoring of, and early risk warning related to, the outbound investment of insurance capital and guard against cross market, cross industry and cross currency contagion of outbound investment risks.
二十一、中国保监会将加强与人民银行、国家外汇局等相关部委的信息共享和协同监管，加强保险资金境外投资监测和风险预警，防范境外投资风险的跨市场、跨行业、跨币种传递。
22 . If an Insurance Institution violates this Circular in the course of engaging in the Business, the CIRC will record its improper act and order it to rectify the matter; if the circumstances are serious, it will take regulatory measures such as suspending its engagement in the Business or outbound investment business.
二十二、保险机构开展内保外贷业务过程中违反本通知规定的，中国保监会将记录其不良行为并责令整改，情节严重的，采取暂停该保险机构开展内保外贷业务或境外投资业务等监管措施。
23 . This Circular shall be effective as of the date of issuance.
二十三、本通知自发布之日起施行。
clp reference:3520/18.02.01 issued:2018-02-01 effective:2018-02-01
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