Foreign-economic activity financing

Structured financing

Novikombank’s activity is aimed at increasing business efficiency due to the introduction of high technologies, expansion of the range of available products and services, flexibility in decision-making, an individual approach to customer business structuring and customer needs.

The long-term financing of modern equipment purchase by customers has become one of the upcoming trends of business development.

If you are interested in technical re-equipment of your enterprise and in the replacement of physically worn out and obsolete equipment, Novikombank is ready to offer you an optimal scheme for this project finance and to discuss the structure of transactions for the purchase of modern imported equipment, and arrangements with foreign counterparts.

Financing contracts against the guarantees of export credit (insurance) agencies

Export credit agencies (ECA) are organisations primarily aimed at the stimulation of exports of goods and/or services produced in their home countries. Export credit agencies insure export credits against losses in the event of default for political or economic reasons.

Recently Novikombank arranged long-term finance for the acquisition of modern equipment for its customers. Novikombank cooperates with such export-credit agencies as Euler Hermes (Germany), EGAP (Czech Republic), ERG (Switzerland), OeKB (Austria), Coface (France), ONDD (Belgium), KUKE (Poland), CESCE (Spain), and others. Novikombank is ready to cooperate with Russian companies to arrange import contracts finance with EСA participation.

Basic requirements of the borrower:

• minimum period of borrower’s operation in the given industry should be at least 3 years;
• company activity should be break-even throughout two latest quarters;
• no overdue debt to the budget and other state bodies;
• tangible assets of the company should exceed the cost of financing at least twice;
• the borrower’s own funds in the project should be at least 15% of the project cost.

Security:

• fixed assets (equipment, real estate);
• inventory items;
• securities;
• guarantees of resident banks;
• guarantees of the third parties;
• vehicles.

Trade finance

Any company business in many ways depends on competitive qualitative products, reliable partners, and the speed of funds turnover. Commercial companies and manufacturers of various products who import raw materials, goods, intermediate products, accessories and materials expand economic relations and increase trade turnover by participating in international trade.

At the same time, a Russian company does not always have its own financial resources at the required volume to pay for the next consignment of goods delivered by its foreign partner, or to buy necessary equipment.

In this case Novikombank is ready to offer trade finance services (financing import contracts with the use of credit lines of foreign banks opened for Novikombank). The use of foreign resources helps customers to run more successful and profitable businesses and to use their current assets for other purposes.

Bank’s services in trade finance of import contracts:

• financing customer import contracts (delivery of goods, materials, spare parts) against liquid collateral;
• import contracts crediting within credit lines under documentary operations opened in Novikombank’s name (letters of credit, guarantees).

The basic conditions of financing:

• financing of foreign trade contracts for the purchase of goods, materials, spare parts, equipment, etc.;
• financing up to 100% of contract amount;
• amount of financing: from 50,000 euros/US dollars;
• term of financing: up to 1 year;
• customs and tax payments are paid by the buyer from its own funds.

Base requirements to the borrower:

• going concern – minimum period of functioning of the borrower in the given industry should be at least 2 years;
• company activity should be break-even throughout two latest quarters;
• no overdue debt to the budget and other state bodies;
• tangible assets of the company should exceed the cost of financing at least 3 times.

Security:

• fixed assets (equipment, real estate);
• inventory items;
• securities;
• guarantees of resident banks;
• guarantees of the third parties;
• vehicles.

Novikombank has credit lines opened with large western banks. The Bank’s specialists will help you to optimise payment structures and identify basic conditions and the cost of financing at project preparation stage.

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