Short-term financing using banker’s acceptance

Joint Stock Commercial Bank AK BARS has been performing since 2003 short-term export financing of its clients under the made or planned shipments of exported goods using banker’s acceptance.

The following deals correspond to the terms of export financing:

• shipments effected no earlier than 30 days before the date of the banker’s acceptance issue,
• planned shipments no later than 30 days after the mentioned date.

The subject of financing is an export contract for the delivery of goods.

Pre-export financing
For pre-export financing traditional commercial financing is offered as a rule: financing of the exporter at the stage of the production of goods to be exported.

Post-export financing
Post-export financing is usually financing of delay in payment under the contract, which is granted to the importer by the exporter. Such a deferment of payment in world practice is a key term of most foreign trade contracts, where clients deal with capital-intensive and high-tech equipment with long-term assemblage, launch and payback.

Short-term financing of export using banker’s acceptance from Joint Stock Commercial Bank AK BARS includes:

• Opportunity to obtain facilities in the amount of the proceeds anticipated from the realization at production stage, shipments of goods under the signed export contracts
• Stable ties of Joint Stock Commercial Bank AK BARS  with banks - non-residents;
• Realization of the integral scheme of financing.

Requirements

1. The period of real working of the company or a business group (several companies under one owner) in its field of business should be not less than 3 years.
2. Break-even business for the last 4 quarters.
3. Absence of overdue commitments to budgetary and off-budgetary funds.

Handling procedures

1. Exporter addresses the Bank with an application for financing of foreign trade contract for export of goods/services out of Russian Federation.
2. Exporter delivers package of documents in the Bank.
3. Credit Committee of the Bank makes a decision concerning financing of the project.
4. Required documents between Joint Stock Commercial Bank AK BARS and Russian exporter, interbank loan agreement is signed between AK BARS Bank and foreign financing bank.

Required documents

1. Financial statements of the enterprise for the last 3 years under review (audited statements if any);
2. Copy of foreign trade contract;
3. Description of the deal (name of the goods, importer, exporter, country of origin, destination, delivery date and contract value);
4. Shipping schedule and delivery terms;
5. Shipping documents under shipments performed;
6. Information about the ultimate buyer of the goods delivered;
7. Information about the types of security guaranteeing refund of loan falicities;
8. Other documents on the Bank’s request.

Contacts

Integrated inquiry office of Joint Stock Commercial Bank AK BARS

• (843) 2-303-303 (Kazan);
• 8-800-2005-303 (free call throughout Russia)

International structured finance department

• Telephone number: (843) 519-38-82;
• fax: (843) 519-39-92.

Documentary business department

• Telephone number: (843) 519-38-82;
• fax: (843) 519-39-95.

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