International Financing

Joint-Stock Commercial Bank «AK BARS» offers its corporate customers services to help sustain foreign economic activity.

Joint-Stock Commercial Bank «AK BARS» offers favourable terms and conditions for raising international facilities from foreign banks for the financing of its clients’ short-term projects. Facilities are attracted both for general purposes, and for the financing of a wide variety of its clients’ short-term commercial transactions.

Short-term international trade financing is a loan issued, or a credit line set by a foreign, to a Russian importer/exporter, or to a bank, for the financing of its clients’ international trade contracts.

Types of short-term financing:
  • L/C with post-financing;
  • discounting of L/Cs with deferred payments;
  • tied loans refinanced by foreign credit institutions.
Short-term trade financing from Ak Bars Bank includes:
  • optimal low costs; extensive network of correspondent banks offering financing;
  • choice of the optimal method of contract payments;
  • opportunity to defer payment for up to 2 years;
  • the possibility of risk minimisation in cases of non-payment or non-delivery.
Requirements
  • The period of the company or a business group’s (several companies under one owner) genuine operation in its field of business should be not less than 3 years.
  • Break-even business for the last 4 quarters.
  • Absence of overdue commitments to appropriated or off-budget funds.
Handling procedures
  • Importer addresses the Bank with an application for financing of foreign trade contract for export of goods/services out of Russian Federation.
  • Importer delivers package of documents to the Bank.
  • Credit Committee of the Bank makes a decision concerning financing of the project.
  • In the case of the Credit Committee of Ak Bars Bank and the Credit Committee of a foreign bank approving the financing for the project, all the  required documents between the Importer and Ak Bars Bank are signed.
Required documents
  • Financial statements for the enterprise for the last 3 years under review (audited statements if any);
  • Copy of foreign trade contract;
  • Information on the types of security guaranteeing the refund of loan facilities;
  • Other documents at the Bank’s request.

Since 2003, JJoint-Stock Commercial Bank «AK BARS» has been providing short-term export financing of (potential or already completed) 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 issue date of the banker’s acceptance,
  • planned shipments no later than 30 days after the aforementioned date.

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

Pre-export financing

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

Post-export financing

Post-export financing is usually financing of the delay in payment of the contract, granted to the importer by the exporter. Such a deferment of payment in world practice is a key condition of most foreign trade contracts where clients deal with capital-intensive and high-tech equipment for which a long period of time is required for assembly, launching and subsequent payback.

Short-term export financing using banker’s acceptance from Joint-Stock Commercial Bank AK BARS includes:
  • The opportunity to obtain facilities to the value of the proceeds anticipated from the realisation at production stage, shipments of goods under the signed export contracts
  • Joint-Stock Commercial Bank «AK BARS»s steady ties with banks — non-residents;
  • Delivery of integrated financing scheme.
Requirements
  • The period of the company or a business group’s (several companies under one owner) genuine operation in its field of business should be not less than 3 years.
  • Break-even business for the last 4 quarters.
  • Absence of overdue commitments to appropriated or off-budget funds.
Handling procedures
  • Exporter addresses the Bank with an application for financing of foreign trade contract for export of goods/services out of Russian Federation.
  • Exporter delivers package of documents to the Bank.
  • Credit Committee of the Bank makes a decision concerning financing of the project.
  • 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
  • Financial statements for the enterprise for the last 3 years under review (audited statements if any);
  • Copy of foreign trade contract;
  • Description of the business deal (name of the goods, importer, exporter, country of origin, destination, delivery date and contract value);
  • Shipping schedule and delivery terms;
  • Shipping documents for completed shipments ;
  • Information regarding the ultimate buyer of the goods delivered;
  • Information regarding the types of security guaranteeing the refund of loan facilities;
  • Other documents at the Bank’s request.

Ak Bars Bank arranges mid to long-term financing of its clients’ investment projects with the attraction of foreign financing for the purposes of:

  • establishing new production;
  • reconstruction, modernisation or the expansion of existing production.

The subject of financing is an import contract for the delivery of equipment, machinery, instrumentation, means of transport, technological lines, mini-plants; as well as for completion of construction works and delivery of services in assembly, finishing, and setting up of equipment etc.

Due to its fruitful co-operationwith foreign financial institutions, AK BARS Bank issues loans to enterprises and companies using foreign investments.

The Bank has already been approved for financing of projects by a number of European export credit agencies and has been co-operating with the following banks:

Country
State export credit agency
Banks
Germany HERMES Commerzbank AG
AKA Ausfuhrkredit-Gesellschaft mbH
Landesbank Baden-Wurttemberg
Landesbank Berlin AG
Deutsche Bank AG
Czech republic EGAP Komercni Banka AS
Interbanka A.S.
Italy SACE Intesa Sanpaolo SpA
Switzerland SERV UBS AG
Austria OeKB Raiffeisen Bank International AG
UniCredit Bank Austria AG
Belgium ONDD KBC Bank N. V.
Country
State export credit agency
Banks

Depending on the clients’ needs, the Bank is prepared to arrange export financing from any country which is a member of the OECD (Organisation for Economic Cooperation and Development).

The Bank offers to finance projects with non-standard parameters.  Terms of financing are agreed on a case-by-case basis.

Mid to long-term import financing from Joint-Stock Commercial Bank «AK BARS» includes:
  • Established long-term relations of AK BARS Bank with the leading banks of the world
  • Experience in delivering clients’ projects with state export credit agencies of leading countries of the world
  • Attractive terms of financing
  • Long- term lending periods

Favourable terms and conditions for repayment (by equal semi-annual installments).

Requirements
  • The period of the company or a business group’s (several companies under one owner) genuine operation in its field of business should be not less than 3 years.
  • Break-even business for the last 4 quarters.
  • Absence of overdue commitments to appropriated or off-budget funds.
  • Financing to the value of proprietary resources of not less than 15% of the contract value, and not less than 15% of ECA insurance fee.
  • The borrower must possess a business-plan for the project, completed construction and licensing documents, as well as specifications for the required equipment at the documentation stage.
  • Other requirements.
Handling procedures
  • Importer addresses the Bank with an application for financing of foreign trade contract for export of goods/services out of Russian Federation.
  • Importer delivers package of documents to the Bank.
  • Credit Committee of the Bank makes a decision concerning financing of the project.
  • In case of the Credit Committee of Ak Bars Bank and the Credit Committee of a foreign bank and state export credit agency approving financing for the project, all the required documents are signed, including agreement between Ak Bars Bank and the Russian importer and the interbank loan agreement between Ak Bars Bank and foreign financing bank.
Required documents
  • Importer addresses the Bank with an application for financing of foreign trade contract for export of goods/services out of Russian Federation.
  • Importer delivers package of documents to the Bank.
  • Credit Committee of the Bank makes a decision concerning financing of the project.
  • In case of the Credit Committee of Ak Bars Bank and the Credit Committee of a foreign bank and state export credit agency approving financing for the project, all the required documents are signed, including agreement between Ak Bars Bank and the Russian importer and the interbank loan agreement between Ak Bars Bank and foreign financing bank.