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Trade and export finance

VTB Bank offers trade and export finance products and services to support export and import activities. This is one of the core businesses of the Bank which enables VTB to meet its customer needs and support foreign trade.

  • Import support

  • Export Support

  • VTB Bank provides a wide range of trade and export finance services supporting import operations, including tied financing, Export Credit Agencies (ECA) covered finance, post-import finance and guarantee transactions.

    Tied financing

    Tied financing is available for VTB Bank clients involved in export-import activities. VTB provides financing to corporate clients by means of attracting interbank funds from the international financial institutions; the product is primarily focused on short-term financing.

    The advantages of tied financing are: availability of substantial volumes of funds, lower pricing for VTB clients, easy and fast deals structuring and execution.

    Pre-export finance scheme

    ECA covered finance

    ECA covered finance is used primarily by importers of capital-intensive goods with long payback periods (such as aircrafts, new production lines, plant construction, high-tech and heavy equipment, etc.). VTB offers its corporate clients long-term financing (amortizing) for the purchase of foreign equipment or payment for a foreign counterparty’s services by means of attracted funding from international financial institutions. ECA guarantees the transaction’s risk in order to extend the financing tenor and lower the pricing (possibility to arrange a grace period for the repayment of principal amount up to 2 years).

    ECA covered finance (based on LC)

    ECA covered finance (refinancing without LC)

    Post-import finance

    Post-import finance is available for corporate customers importing goods and services (commodities, food & beverages, agricultural goods, machinery and equipment, spare parts, etc.). Depending on the subject of the contract and the counterparty country, VTB can provide post-import finance for up to 5 years.

    At present time post-import finance is arranged through LCs with deferred payment and discounting. In this transaction, VTB issues LCs with deferred payment by order of the importer (client). The LC is then discounted by the foreign bank against documents. The client receives a deferral of payment for a specified period (up to 5 years), at a lower interest rate, while the foreign exporter receives the money at sight against delivery/documents presented to the foreign bank.

    The abovementioned form of financing is currently the most advantageous for the client as it offers the optimal discounting terms and conditions by foreign banks dealing with VTB.

    Post-import finance

    For more information on the LCs, please visit the Letters of Credit page on our website.

    Guarantee transactions

    Bank guarantees issued by VTB Bank against the counter-guarantees of a foreign banks allows importer to avoid performance risk under contractual obligations by the foreign supplier (or a foreign contractor in a construction project).

    For more information on guarantees please visit the Guarantee Transactions page on our website.

  • Export Support

    To support clients’ export operations, VTB Bank offers a wide range of trade and export finance products and services such as tied financing, Export Insurance Agency of Russia (EXIAR) covered finance, guarantee transactions and documentary operations for banks.

    Tied financing

    Tied financing is available for VTB Bank clients involved in export-import activities. VTB provides financing to corporate clients by means of attracting interbank funds from the international financial institutions; the product is primarily focused on short-term financing.

    The advantages of tied financing are: availability of substantial volumes of funds, lower pricing for VTB clients, easy and fast deals structuring and execution.

    Pre-export finance scheme

    Export Insurance Agency of Russia (EXIAR) covered finance

    EXIAR* covered finance is available for Russian exporters or foreign companies (for example in countries with higher risks) importing goods from Russia; the product is mainly focused on the export of heavy and high-tech machinery and equipment.

    The advantages of financing under EXIAR coverage are: availability of substantial volumes of funds, possibility of providing financing to a client or a foreign bank that offers tied financing to foreign importers.

    * The Export Insurance Agency of Russia (EXIAR) was established in 2011 as a wholly owned subsidiary of Vnesheconombank (VEB). The Agency provides insurance for exports of Russian-made goods and services; develops modern system of export financing under the Agency’s insurance coverage; provides insurance support to Russian companies operating abroad; and supports export oriented SMEs. The Agency’s coverage protects export loans against business and political risks, and Russian investments abroad against political risks (from 2013).

    The Agency operates within a special legal framework which regulates the provision of insurance support for export loans and investments. The Agency’s insurance capacity is RUB 300 billion. The Agency is authorised to cover up to 95% of losses resulting from political risks in each insured deal, and up to 90% in case of commercial risks.

    EXIAR covered finance

    Guarantee transactions and confirmation. Export LCs financing 

    VTB Bank offers the following services:

    • Issuance of bank guarantees on behalf of and against the counter-guarantee of counterparty banks within the export contracts:

    VTB Bank guarantees the fulfilment of contractual obligations by foreign importers. In case of non-performance of the contractual obligations, VTB Bank pays compensation equal to the amount claimed by the beneficiary in compliance with the guarantee’s terms and conditions. VTB Bank also arranges advanced payment/performance guarantees from foreign banks in favor of foreign importers/customers.

    • LCs confirmation issued by counterparty banks:

    Covers the risk of non-payment of importer’s obligations under the contract in favor of the exporter. VTB Bank undertakes to pay compensation equal to the amount stated in the presented shipment documents under the LC, even if the importer and its bank cannot pay for the shipped goods. The product allows the exporter to avoid poor quality receivables occurrence.

    • Financing of deferred payment under export LCs issued by the importer’s bank and confirmed by VTB:

    Enables the exporter to provide foreign counterparty with payment deferral for the shipped goods using VTB’s funds, whereas the supplier receives full payment immediately upon presenting shipment documents; the product suppose importer’s bank limit utilization.
  • VTB Bank has been repeatedly ranked best bank for trade finance by major international media outlets, including:

    — 2016 — Best Bank in Russia, by Global Finance;
    — 2016 — Best Bank in Russia and the CIS, by Trade & Forfaiting Review;
    — 2015 — Best Bank in Russia and the CIS, by Global Trade Review.



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