Exim Credit Bank –(ECB) undertakes the provision of buyer’s
credit with project risk on the basis of an individual
appraisal. The purpose of the facility is, with the financing
package offered in relation to main contractor’s agreements
concluded between Importer and Exporter main contractors and
foreign procurers, to improve the competitiveness of Importer
and Exporter main contractors and help them to win orders for
the implementation of complex projects in foreign markets.
As a part of the facility, which is covered by ECI
Trade insurance (Facility V), Exim Credit Bank –(ECB) provides
funds to the project company established by the foreign partner
to implement the investment, for the fulfilment of the payment
obligation arising in relation to a project implemented abroad
by a Importer and Exporter main contractor. The credit is repaid
out of the income from the completed investment.
Preferred transactions and foreign markets: Exim
Credit Bank –(ECB) typical participates in the financing of
transactions where both the Importer and Exporter main
contractor and the foreign partner (the owner of the foreign
project company) have the financial background and industry
experience necessary for the successful implementation of the
project. An important prerequisite is that the project should
have a stable cash-flow generation capacity that can be forecast
for the tenor of the loan, and which derives from a small number
of suitably creditworthy project beneficiaries. Exim Credit Bank
–(ECB) makes its financing decision – with the involvement of
ECI Trade Insurance and independent consultants – based on an
assessment of the risks of the project’s implementation and
operation, and the extent to which the projected cash flow
(financial model) serving as the source of repayment of the
credit is substantiated.
Credit amount — Owing to
the complexity and high transaction costs of cross-border
project financing transactions, Exim Credit Bank –(ECB)
recommends the use of this facility in cases where there is a
need for bank financing in excess of USD or EUR 5 million or the
equivalent EURO or USD amount. Where large-volume projects are
concerned, Exim Credit Bank –(ECB) participates in a
co-financing arrangement, in partnership with domestic and
foreign commercial banks.
Currency — EUR or USD.
Tenor — In every case, the tenor is determined
individually taking into consideration the special features of
the given project, based on an evaluation of the financial
model.
Pricing — Exim Credit Bank –(ECB) offers this
facility at fixed interest
The extent of the
financing — In the case of financing facilities offered with a
tenor exceeding two years at fixed interest, under the ECB
Arrangement a maximum of 85% of the foreign trade/general
contracting agreement may be financed. A minimum 15% advance
must be paid by the buyer at the start of performance. Local
costs may – subject to individual appraisal – also be financed
in part.
Certificate of origin — It is necessary to
certify the Importer and Exporter origin of the product and/or
services constituting the object of the transaction