Document:

EXHIBIT 4.16

HSBC

 Commercial Banking - Division C

 Ref:

 CONFIDENTIAL
 Bonso Electronics Ltd
 Unit 1106-1110, 11/F Star House
 3 Salisbury Road
 Tsimshatsui
 Kowloon                                                            8 April 2003

Attention:  Ms Cathy Pang

Dear Madam

BANKING FACILITIES
A/C No 557-002615

With reference to our recent discussions, we are pleased to advise that we have
reviewed your banking facilities and offer a renewal within the following limits
which will be made available on the specific terms and conditions outlined
below. These facilities are subject to review at any time and in any event by 1
April 2004, and also subject to our overriding right of withdrawal and repayment
on demand, including the right to call for cash cover on demand for prospective
and contingent liabilities.

                                                                          Limits
                                                                          ------
Overdraft                                                            HKD 500,000
---------

Interest on the overdraft facility will continue to be charged on daily balances
at our best lending rate, (currently 5 % per annum, but subject to fluctuation
at our discretion), payable monthly in arrears to the debit of your current
account.

Import / Export Facilities                                         HKD22,000,000
--------------------------

Documentary credits with import finance up to 120 days (less any usance or
credit periods granted by your suppliers) and / or D/P bills purchased on
approved drawees.

Within which
------------

 (1) Goods under your control and/or Trust Receipts.             (HKD20,000,000)

 (2) D/A  bills purchased up to 90 days on                       (HKD16,000,000)
     approved drawees.

The aggregate outstanding of (1) and (2) should not exceed HKD20,000,000.The
outstanding export bills purchased for an approved drawee should not be greater
than HKD2,000,000 and are required to be covered by the Hong Kong Export Credit
Insurance Corporation's Comprehensive Cover Policy taken out by you and duly
assigned to us.

We may, at our sole and absolute discretion, refuse to allow drawings under the
facilities if the drawee is considered by us to be unacceptable and / or if the
transaction in question does not meet our operational requirements in respect of
these facilities.

  The Hongkong and Shanghai Banking Corporation Limited               ......  /2
  Hong Kong Main Office: 1 Queen's Road Central, Hong Kong
  Tel:28221111 Fax:
  Telex: 73205 Hssc Hx Telegrams: Hongbank Hongkong
  Web: www.hsbc.com.hk

<PAGE>

Bonso Electronics Ltd                                               8 April 2003

                                      -2-
--------------------------------------------------------------------------------

Interest on your HKD import/export loans will continue to be charged on a daily
basis at our best lending rate, (currently 5 % per annum, but subject to
fluctuation at our discretion) and is payable monthly in arrears to the debit of
your current account.

Interest on foreign currency import/export loans will continue to be charged on
a daily basis at our USD best lending rate, (currently 3 % per annum, but
subject to fluctuation at our discretion) and is payable monthly in arrears to
the debit of your current account.

Opening Commission on Documentary Credits (per 6 months), Commission in lieu of
exchange, Export Commission for acceptance, finance of HKD bills will continue
to be charged as follows

For the first USD50,000.- or its equivalent                            :1/4%
For the balance in excess of USD50,000.- or its equivalent             :1/8%

Accrual of Interest and Other Sums
----------------------------------

Please note that interest and other sums expressed to be chargeable or payable
on a periodic basis will nonetheless accrue from day to day and amounts so
accrued may be demanded at any time.

Please note that interest will be payable on sums which are overdue or overlimit
(as well as amounts demanded and not paid) in respect of all or any of these
facilities and such interest is the same as that charged by us from time to time
on unauthorised overdrafts. Such interest will be payable monthly in arrears to
the debit of your Current Account.

Security
--------

As security for the foregoing facilities, we continue to hold

1.   A Corporate Guarantee dated 8 May 2002 for HKD22,500,000 from Bonso
     Electronics International Inc supported by Board Resolution dated 8 May
     2002 and Legal Opinion dated 29 May 2002 from Harney Westwood & Riegels &
     the Register of Mortgages, Charges and other encumbrances dated 21 June
     2002.

2.   An Registered Assignment of DC Proceeds from Bonso Electronics Ltd
     supported by Board Resolution both dated 7 May 2001.

Covenants
---------

You will be required for so long as these facilities are available to you to
comply with the following covenants. Your compliance or otherwise with the
following covenants will not in any way prejudice or affect our right to
suspend, withdraw or make demand in respect of the whole or any part of the
facilities made available to you at any time. By signing this letter, you
expressly acknowledge that we may suspend, withdraw or make demand for repayment
of the whole of any part of the facilities at any time notwithstanding the fact
that the following covenants are included in this letter and whether or not you
are in breach of any such covenants.

You covenant and undertake that you will at all times ensure

1)   to direct to us Import/Export business of HKD8,000,000 per month;

<PAGE>

Bonso Electronics Ltd                                               8 April 2003

                                       -3-
--------------------------------------------------------------------------------

2)   to achieve a pari passu position with all your bankers by 31 March 2004.

Bonso Electronics International Inc, as the corporate guarantor, covenants and
undertakes that it will at all times ensure to maintain its gearing below 1.

Please note that all costs and expenses (including legal fees) incurred by us in
connection with the extension of these facilities and any matters arising are to
be reimbursed by you on demand.

Please arrange for your authorised signers, in accordance with the terms of the
mandate given to the bank, to sign and return to us the duplicate copy of this
letter to signify your understanding and acceptance of the terms and conditions
under which these facilities are granted. We also require the authorised signers
of Bonso Electronics International Inc to sign on the duplicate copy of this
letter to signify its agreement and acceptance of the covenant undertaken by it
as stated in this offer letter.

A review fee of HKD13,500.- will be charged to the debit of your current account
upon receipt of your acceptance to these facilities.

Section 83 of the Banking Ordinance
-----------------------------------

Please note that Section 83 of the Banking Ordinance has imposed on us as a bank
certain limitations on advances to persons related to our directors or
employees. In acknowledging this Facility Letter you should advise us whether
you are in any way related to any of our directors or employees within the
meaning of Section 83 and in the absence of such advice we will assume that you
are not so related. We would also ask, should you become so related subsequent
to acknowledging this Facility Letter, that you immediately advise us in
writing.

These facilities will remain open for acceptance until the close of business on
7 May 2003 and if not accepted by that date will be deemed to have lapsed.

We are pleased to be of continued assistance.

Yours faithfully

                                            For and on behalf of
                                            BONSO ELECTRONICS LTD.

                                            /s/ Anthony So
                                            ---------------------------------
                                                Authorized Signature(s)

/s/  David Yeung
-----------------------------
     David Yeung
     Relationship Manager

     DY\em\bonS0403EXHIBIT 4.17

NATEXIS
BANQUES
POPULAIRES

HONG KONG BRANCH
12th Floor, CITIC Tower, I Tim Mel Avenue, Central, Hong Kong
Telephone : (852) 28 28 09 99 - Fax: (852) 25 83 98 01
Tlx : 80186 BFCEX

     Our ref: CCIB/SC/mch/03-L0013BONS0

     13th February 2003

     Bonso Electronics Limited
     Unit 1106-1110
     11/F, Star House
     3 Salisbury Road
     Hong Kong
     Attn.:  Mr. Hung-Gun Anthony SO
             Chairman

     Dear Sirs,

     RE: GENERAL BANKING FACILITIES
     ------------------------------

     We are pleased to inform that Natexis Banques Populaires, Hong Kong Branch
     (the "Lender") is prepared to make available the following uncommitted
     general banking facilities (the "Facilities") to you subject to the
     accompanying terms and conditions as stipulated in this letter (the
     "Facility Letter") and subject to the terms contained in our standard
     General Commercial Agreement, which terms shall apply to all transactions
     contemplated by this Facility Letter.

     1.   BORROWER
          --------

          Bonso Electronics Limited

     2.   CORPORATE GUARANTOR
          -------------------

          Bonso Electronics International Inc.

 Telephone : 01 48 00 48 00
 Siege social : 115, rue Montmartre - 75002 Paris
 Adresse postale : BP 265 09 - 75427 Paris Cedex 09

--------------------------------------------------------------------------------

Societe anonyme au capital de 512 548 160 euros - RCS Paris 542 044 524

<PAGE>

                                                                     Page 2 of 6
                                              Our Ref. CCIB/SC/mch/03-L0013BONS0

     3.   FACILITIES
          ----------

          Up to USD2,000,000.00 (Say, United States Dollars Two Million only)
          available for:

     a)   Discount of export buyers' invoices with or without Export Credit
          Insurance Corporation ("ECIC") coverage up to 80% of total value of
          invoices for maximum tenor of 120 days;
     b)   negotiation of export Letter of Credit with discrepancies;
     c)   packing loan up to 70% of the value of the Export Letter of Credit
          issued by banks acceptable to the Lender up to 90 days;
     d)   purchase of Export Bills on the basis of Document against Payment
          ("D/P") and/or Document against Acceptance ("D/A") with recourse for a
          maximum duration of 90 days;

          with sub-limit oh
          -----------------

     e)   Up to USD1,500,000.00 available for:

          i)   the issuance of sight and/or usance Letter of Credit ("L/C") for
               a maximum usance period of 120 days;
          ii)  Trust Receipt financing ("T/R") for a maximum tenor of 120 days
               for imports under L/C issued by the Lender;
          iii) the issuance of shipping guarantee under LIC issued by the
               Lender;
          iv)  up to a notional sum of USD1,500,000.00 or its equivalent in
               other major convertible currencies available for Foreign Exchange
               Spot/Forward Contracts with a maximum tenor of six months;

     f)   Up to USD500,000.00 for discount of D/P, D/A export bills to Korona
          Haushaltswaren GmbH & Co. KG in Germany up to 120 days.

          Remarks:
          --------

     1)   e) + f) shall not exceed USD1,500,000.00.

     2)   Aggregate tenor of T/R and Usance L/C shall not exceed 120 days.

     3)   The discount of DIP, D/A and export invoice is restricted to the
          pre-approved drawees only. Advance will be made against submission of
          invoice copy and/or copy of bill of lading and/or transport document.
          Upon maturity of the financing period, the relevant buyers shall remit
          payment directly to the Lender in favor of the Borrower.

     4.   PURPOSE
          -------

          Trade activities requirements.

     5.   SUPPORT / COLLATERAL
          --------------------

          >    Corporate Guarantee duly executed by Bonso Electronics
               International Inc_ limit of USD2,000,000.00.

          >    Assignment of ECIC policy on approved drawees with the Lender as
               loss payee for discount of ECIC-covered export buyers' invoices.

<PAGE>

                                                                       Page 3of6
                                              Our Ref. CCIB/SC/mch/03-L0013BONS0

     6.   UNDERTAKING
          -----------

          The Borrower and Corporate Guarantor undertake to

     a)   deliver to the Lender certified true copies of the Borrower's and the
          Corporate Guarantor's annual audited financial statements within 180
          days after each fiscal year and such other information (financial or
          otherwise) as the Lender may request;

     b)   notify the Lender promptly of the occurrence of any event which might
          affect the Borrower's and the Corporate Guarantor's ability to perform
          their obligations hereunder or any change in the shareholding or
          control of the Borrower or of the Corporate Guarantor.

     7.   FACILITY ARRANGEMENT FEE
          ------------------------

          HKD5,000.00 (Say, Hong Kong Dollars Five Thousand), payable upon
          acceptance of this Facility Letter.

     8.   BILL COMMISSIONS
          ----------------

          UC Opening Commission and In Lieu of Exchange Commission
          --------------------------------------------------------

          First US$50,000 or its equivalent                    1/4%
          Balance                                              1/16%

          Handling Fee for Export Invoice Discount
          ----------------------------------------

          1/16% flat on the invoice value or minimum charge at HKD300.00.

          All other banking charges shall be subject to the Lender's standard
          scale of charge and the rules of The Hong Kong Association of Banks.

     9.   INTEREST
          --------

          Trade Finance                  : The Lender's Cost of Funds + 2% p.a.

          Export invoice discount with
           ECIC covered bills            : The Lender's Cost of Funds + 1% p.a.

          The interest shall be calculated on the basis of actual number of days
          elapsed on a year of 360 or 365 days, whichever is applicable to the
          currency concerned in accordance with general banking practice.
          Interest on Trade Finance is to be payable in arrears on the last day
          of each interest period.

          If any sum is not paid when due, that sum shall bear an overdue
          interest at a rate of 3% per annum above the rate as specified above
          from the due date to the date when actual payment is made in full.

<PAGE>

                                                                     Page 4 of 6
                                              Our Ref. CCIB/SC/mch/03-L0013BONS0

     10.  CONDITIONS PRECEDENT
          --------------------

          The Facilities will be available until further notice subject to the
          availability of funds and the receipt of the followings that are in
          form and substance satisfactory to the Lender

     a)   the attached copy of the Facility Letter duly signed by authorized
          signatories of the Borrower and the Corporate Guarantor signifying the
          acceptance of the agreement to the terms and conditions contained
          herein, with respective supporting board resolutions;

     b)   the Corporate Guarantee duly executed by. the Corporate Guarantor,
          with supporting board resolutions; (received)

     c)   certified copies of constitutional documents of the Borrower and the
          Corporate Guarantor, including Certificate of Incorporation, Business
          Registration Certificate, and Memorandum & Articles of Association;
          (received)

     d)   the General Commercial Agreement duly completed and executed by the
          Borrower, with supporting board resolutions; (received)

     e)   account opening documentation duly completed by the Borrower;
          (received)

     f)   certified copies of Identification/Passport of the authorized
          signatories of the Borrower and the Corporate Guarantor; (received)

     g)   such other documentation as may be reasonably requested by the Lender
          to validate the above Facilities.

     11.  WARRANTY
          --------

          The Borrower and the Corporate Guarantor hereby warrant that there has
          been no material adverse change in their respective financial
          conditions which would reduce their ability to meet their obligations
          hereunder.

     12.  LAW AND VENUE
          -------------

          This Facility Letter and the execution thereof shall be governed by
          and construed in accordance with the laws of Hong Kong Special
          Administrative Region ("Hong Kong"). The Borrower and the Corporate
          Guarantor hereby irrevocably agree to submit to the non-exclusive
          jurisdiction of the Hong Kong courts.

     13.  SERVICE AGENT
          -------------

          The Borrower agrees to accept the appointment of the Corporate
          Guarantor to be its service agent to receive and acknowledge on behalf
          of the Corporate Guarantor of any writ, summons judgment or other
          notice of legal process in Hong Kong issued in relation to this
          Facility Letter. If for any reason that the Borrower (or its
          successor) no longer services as service agent of the Corporate
          Guarantor for this purpose, they shall promptly request the Corporate
          guarantor to appoint a successor service agent and notify the Lender
          thereof. The Corporate Guarantor agrees that any such legal process

<PAGE>

                                                                     Page 5 of 6
                                               Our Ref.CCIB/SC/mch/03-L0013BONS0

          shall be sufficiently served on the Corporate Guarantor if delivered
          to the Borrower for service at its address for the time being in Hong
          Kong whether or not such agent gives notice thereof to the Corporate
          Guarantor.

As a general banking practice and notwithstanding any terms and conditions
specified above, the Lender reserves its overriding right to cancel, modify or
demand immediate repayment of all outstanding balances whether due or owing,
actual or contingent under the Facilities without prior notice. The usage and
the continual availability of the Facilities are subject to the Lender's
standard documentation, periodic review and the usual requirement that there
will be no material adverse change in the financial position of the Borrower and
the Corporate Guarantor.

Please indicate your acceptance of the above terms and conditions by signing and
returning to us the duplicate of this Facility Letter.

This Facility Letter, once accepted and upon our confirmation that all
Conditions Precedent have been satisfied, shall supersede our Facility Letter
dated 30'" January 2002 (Our ref. CORP/RC/mch/02-L0006Bonso) and the outstanding
thereunder shall be transferred as outstanding hereunder.

We are pleased to be of service to your company and look forward to a mutually
beneficial relationship.

Yours faithfully,
For and on behalf of
Natexis Banques Populaires
Hong Kong Branch

/s/  Tony AU                                /s/  Frederick FAN
-----------------------------               ----------------------------------
     Tony AU                                      Frederick FAN
     Deputy General Manager                       Head of Operations

We confirm our acceptance on the terms and conditions stated in above and agree
to be bound thereby.

For and on behalf of
BONSO ELECTRONICS LTD.

/s/   SO HUNG GUN ANTHONY
-----------------------------
Name: S0 HUNG GUN ANTHONY
Title:CHAIRMAN
Date: FEB 20, 2003

<PAGE>

                                                                     Page 6 of 6
                                              Our Ref. CCIB/SC/mch/03-L0013BONS0

We, as Corporate Guarantor, hereby confirm and consent to the terms and
conditions of the Facilities, and confirm that our obligations under the
Guarantee of 18 MAR, 2002 continue in full force and effect and expressly extend
to and guarantee the performance of the terms and conditions of the Facilities.

For and on behalf of
Bonso Electronics International Inc.

/s/   SO HUNG GUN ANTHONY
-----------------------------
Name: SO HUNG GUN ANTHONY
Title:CHAIRMAN
Date: fEB 20, 2003

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}]]